Underutilization of Funds
Recent data from the social justice and empowerment ministry indicates that nearly 25% of funds allotted for the welfare of scheduled castes under the Development Action Plan for Scheduled Castes (DAPSC) in 2024-25 have remained unutilized.
Challenges in Fund Utilisation
- Consistent underutilization of funds is a notable issue, as highlighted by budget documents and CAG reports.
- Unspent funds equate to denied welfare.
- 39 Government of India ministries and departments must earmark 2-20% of their total outlay for SC/ST welfare.
- Funds are often misallocated to generic programs that only partially benefit SC populations, leading to challenges in identifying targeted schemes.
Suggestions and Concerns
- NITI Aayog proposed conditional cash transfers to SC households, but these have not gained traction.
- Transferring unutilized funds to nodal ministries for SC/ST welfare has raised concerns due to scattershot allocation and management.
Proposed Solutions
- In 2024-25, the allocated amount was ₹1.66 lakh crore.
- Instead of individual ministries developing targeted schemes, the funds could be treated as grants, contributions, or guarantees.
- Each central ministry can use the earmarked sum to fund programs and schemes developed by the ministry for social justice.
- Proposed initiatives could include:
- Seed money for SC-run innovative businesses.
- Education grants.
- Investment in healthcare in underserved areas with high SC populations.
- This approach aims to minimize duplication, broaden the pool of beneficiaries, and improve assessment of program deliverables.
