With ₹51,034 crore earmarked for 2025-26, the flagship welfare schemes continue to impact millions across the state of Karnataka.
Published Mar 07, 2025 | 5:53 PM ⚊ Updated Mar 07, 2025 | 5:53 PM
Synopsis: The Congress-led Karnataka government reiterated its commitment to the five Guarantee schemes in the 2025-26 state budget, with ₹51,034 crore allocated to welfare initiatives aimed at empowering marginalised communities. While critics have questioned the sustainability of these schemes – which include free bus travel for women, direct financial aid for households, free electricity, food security measures, and unemployment assistance – the government maintains that they are essential investments in social justice and economic growth.
In his 2025-26 state budget presentation, Karnataka Chief Minister Siddaramaiah reaffirmed his government’s commitment to the five Guarantee schemes, arguing that they are not mere freebies but strategic investments in social and economic justice.
Drawing inspiration from Dr BR Ambedkar, Basavanna, Buddha, and Narayana Guru, he positioned these welfare measures as key instruments for empowering marginalised communities and stimulating the state’s economy.
The government has earmarked ₹51,034 crore for the guarantee schemes in the current financial year.
While critics have questioned the sustainability of these welfare measures, the state government argues that they are essential tools for improving quality of life, reducing economic disparities, and strengthening the economy through increased consumption and financial empowerment.
The chief minister noted that the schemes have already played a significant role in increasing the purchasing power of Karnataka’s residents, with over ₹1 lakh crore directly transferred to beneficiaries since their implementation.
The first of the five guarantee schemes to be implemented, Shakti offers free bus travel to women across Karnataka, in non-AC, non-premium buses.
In the 2024-25 fiscal year, 226.53 crore women passengers benefitted from this scheme, with the government spending ₹5,015 crore.
For the 2025-26 financial year, the state has allocated ₹5,300 crore to sustain and expand the scheme.
The Gruha Lakshmi scheme provides ₹2,000 per month to women heads of households, aiming to enhance financial independence.
In 2024-25, 1.22 crore women received financial assistance under this scheme, a a cost of ₹28,608 crore to the exchequer.
The government has also announced initiatives to integrate these beneficiaries into self-help groups under the Akka Cooperative Society, improving their access to financial resources and entrepreneurship opportunities.
The Gruha Jyoti scheme provides free electricity to eligible households, and is aimed at alleviating financial pressure on low-income families.
In 2024-25, 1.62 crore consumers registered for the scheme, with the government spending ₹9,657 crore to cover costs.
The allocation for 2025-26 has been increased to ₹10,100 crore, ensuring continued support for households already burdened by the rising inflation.
The Anna Bhagya scheme provides additional food grain support to low-income families, replacing direct benefit transfers with 5 kg of additional rice per beneficiary.
The scheme currently benefits 4.21 crore people, with the state government implementing measures such as CCTV surveillance in warehouses, GPS-based vehicle tracking, and a Command Control Centre to ensure efficient distribution and reduce fraud.
New fair price shops will be established, with a preference for Scheduled Castes, Scheduled Tribe communities, and cooperative societies in their allotment.
To support young job seekers, the Yuva Nidhi scheme provides unemployment allowances to graduates and diploma holders.
In 2024-25, 2.58 lakh youths registered for the scheme, receiving a total of ₹286 crore through Direct Benefit Transfer (DBT).
Beyond financial assistance, the government has linked the scheme with the Industry Linkage Cell (ILC) to provide skill training, enhancing job prospects for Karnataka’s youth.
Additionally, the Chief Minister’s Kaushalya Karnataka Yojane 2.0 (CMKKY 2.0) will offer international job fairs, career guidance, and foreign language training to boost employment opportunities further.
(Edited by Dese Gowda)
