Guarantee schemes: Verification alone may not save much to Karnataka’s exchequer

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Bescom staff verifying details of Gruha Jyothi beneficiaries in Bengaluru on Wednesday. | Photo Credit: special arrangement

As the verification drive to ascertain the beneficiaries of guarantee schemes gets under way, it is not expected to bring down much of the financial burden on the State exchequer. Those in the know of financial matters in the State government say a broader rationalisation of benefits in implementing the targeted subsidy by changing the eligibility criteria would help the government save substantially.

The re-enrolment or verification for Gruha Lakshmi and Gruha Jyothi that together cost over ₹40,000 crore per annum is expected to reduce the overall burden by “at the most ₹1,000 crore annually”, according to government sources. “The base for the guarantees has come from Kutumba, which itself has emerged from ration card. We believe verification based on ration cards or voter’s ID might not have substantial difference,” sources pointed out.

Further, the government has not conducted data analysis also to ascertain the actual savings, sources added.

The State government has launched a drive to verify Gruha Jyothi beneficiaries from Wednesday while it is expected to soon ask Gruha Lakshmi beneficiaries to re-apply.

While the government was under pressure to revisit the guarantee schemes, the Comptroller and Auditor General’s (CAG) report has also revealed irregularities, especially in the Gruha Lakshmi scheme where money was allegedly going into accounts of dead beneficiaries, besides unverified beneficiaries. The quantum of these totalled to at least ₹225 crore.

It is learnt that the Finance Department had been seeking rationalisation of guarantees and had also made multiple presentations before the Cabinet during the term of former Chief Minister Siddaramaiah. “So far, there has been no serious discussion on how to rationalise the guarantee schemes. Decision was deferred. Many ideas have been floated, but nothing happened despite multiple presentations,”