Welfare schemes dent state coffers

Strap: To finance guarantees, Karnataka govt availed Rs 37,000 crore more loan than last year: CAG

OB Bureau

The Comptroller and Auditor General (CAG) has revealed that five guarantee schemes implemented by the Karnataka government accounted for 15% of the state’s revenue expenditure in 2023-24. To finance these guarantees, the state availed Rs 37,000 crore more in loans than the previous year and reduced capital expenditure.

The CAG report was tabled in the Legislative Assembly mid-week, with details surfacing on Wednesday. According to the report, “Implementation of the schemes resulted in a 12.54% growth in expenditure over the previous year, contributing to a revenue deficit of Rs 9,271 crore. Consequently, the state’s fiscal deficit rose from Rs 46,623 crore in 2022-23 to Rs 65,522 crore in 2023-24.”

To cover the guarantee schemes and the resulting deficits, the state availed net market borrowings of Rs 63,000 crore—Rs 37,000 crore more than the previous year. The schemes also reduced capital expenditure towards infrastructure by around Rs 5,229 crore compared to 2022-23, the CAG noted.

The report detailed the five guarantee schemes for 2023-24, with a total budget allocation of Rs 36,537.96 crore:

• Gruha Laxmi – Rs 16,964 crore spent to provide Rs 2,000 monthly to women heads of households.
• Gruha Jyothi – Rs 8,900 crore spent under the free power scheme.
• Anna Bhagya – Rs 7,344.68 crore spent on the free rice scheme.
• Shakti – Rs 3,200 crore spent on free travel for women.
• Yuva Nidhi – Rs 88.88 crore spent on scholarships.

The CAG observed that while the state’s revenue grew by 1.86% over the previous year, expenditure grew 12.54%, largely due to these guarantee schemes, which contributed to the revenue deficit.

“This mismatch between receipts and expenditure led to a revenue deficit of Rs 9,271 crore after recovery in 2022-23 from the Covid-19 slowdown. The financial deficit increased correspondingly,” the report stated.

The report also warned that the increased borrowings would not only raise the near-term repayment burden but significantly strain the state’s resources. Additionally, the cut in capital expenditure resulted in a 68% increase in incomplete infrastructure projects, potentially affecting future growth prospects.

The CAG concluded that implementing these guarantee schemes without rationalising existing subsidies or financial assistance pressures the state’s finances and influences fiscal deficits and debt levels.

According to the government’s Medium Term Fiscal Plan 2024-28, a revenue deficit of Rs 27,354 crore is projected, with borrowings expected to reach Rs 1.05 lakh crore. However, the state finance department, during the Exit Conference in January 2025, stated that the five guarantee schemes have boosted the local economy, reduced economic disparities, and supported human capital development.

 

HL: Pass the bill! Herders take their plea to CM

OB Bureau

Over 100 herders gathered at Freedom Park on Tuesday, pressing the Karnataka government to immediately pass the long-promised Shepherds’ Protection and Prevention of Atrocities Bill.

Chief Minister Siddaramaiah had pledged during his Budget speech to introduce protective legislation for the community. Officials said the herders plan to submit a memorandum to the state government outlining their demands.

“Over 100 herders have gathered at Freedom Park. They have a set of demands and will be submitting a memorandum to the state government, which has been arranged,” a senior police officer said.

In the memorandum addressed to the Chief Minister, the Traditional Shepherds’ Welfare Protection Struggle Committee alleged that members of the community continue to face harassment, assaults, threats to life, murders, rapes, sheep thefts, and demands for bribes, particularly in forested and hilly regions. The committee claimed that some of these atrocities were committed by forest department officials and staff.

The document cited recent incidents in Bagalkote, Bidar, and Dharwad districts where shepherds were attacked or killed, stating that such cases “raise grave questions about humanity.”

“To curb these atrocities and ensure welfare measures such as hostel and educational reservations for shepherds’ children, proper medical treatment, insurance, healthcare, market facilities, and legal aid, we have been demanding for many years the enactment of a law to protect the rights and welfare of traditional shepherds,” the memorandum said.

While welcoming the government’s proposed Traditional Migratory Shepherds (Protection Against Atrocities and Provision of Welfare) Bill, 2025, the committee called for stricter provisions for punishment and fines.

It also urged that individuals accused of theft should not easily get bail and that strict action be taken against those misusing benefits meant exclusively for shepherds, as well as officials facilitating such misuse.

The committee appealed to the government to pass the Bill during the ongoing legislative session to ensure the community’s safety and welfare.

HL: Another medico commits suicide

Strap: Experts say that the recurrence of such incidents highlights the urgent need for mental health support

OB Bureau

A tragic incident came to light midweek as 27-year-old Priya Karthik, a postgraduate medical student specialising in psychiatry at the Belagavi Institute of Medical Sciences (BIMS), died by suicide at her hostel.

According to preliminary police reports, Priya, a native of Bangalore, consumed medication at the institute’s hostel to end her life. She had been attending patient examinations at the Belagavi District Hospital until the evening before taking the extreme step later that night. Authorities noted that Priya had reportedly attempted suicide a few days prior.

BIMS Director Ashok Shetty, who visited the hostel, confirmed that Priya had been battling depression and a pre-existing mental health condition. However, police said the exact cause of death would be determined following the postmortem report. A case has been registered at the APMC Police Station, and further details are awaited as the investigation continues.

This incident adds to a worrying pattern of suicides among medical students in Karnataka over the past year. In June 2025, 22-year-old Vishnu Priya, a student of Subbaiah Medical College in Shivamogga, was found dead in her hostel room while completing her bachelor’s internship.

In July 2025, Bharat Yettinamani, a first-year MBBS student at Mandya Institute of Medical Sciences (MIMS) and a native of Bandi village in Koppal district, died by hanging at the institute’s hostel after speaking with friends until midnight.

Going further back, in November 2023, 20-year-old Prakruthi Shetty, a first-year MBBS student at AJ Medical College in Mangaluru, ended her life by jumping from the sixth floor of the hostel building. Preliminary investigations suggested she had been struggling with depression related to body image issues.

Experts say that the recurrence of such incidents highlights the urgent need for mental health support and counselling facilities for medical students, who often face extreme academic pressure and stress.

BIMS authorities have expressed their grief and reiterated a commitment to providing counselling and support for students facing mental health challenges. Police continue to investigate the circumstances surrounding Priya Karthik’s death and have urged students and institutions to prioritise mental well-being.