Money unspent is welfare denied

New data from the social justice and empowerment ministry reveal that nearly 25% of funds allocated for welfare of scheduled castes by central ministries under Development Action Plan for Scheduled Castes (DAPSC) in 2024-25 has gone unutilised. What applies for much of India's public expenditure clearly applies for this category. Budget documents and CAG reports highlight consistent underutilisation of funds. Money unspent is welfare denied. It's time to reassess ways in which funds can be used for maximum impact, rather than tinkering on the margins.

The 39 GoI ministries and departments are required to earmark 2-20% of the total outlay for SC/ST welfare. Funds cannot be used for generic programmes that 'also benefit' SC populations. Ministries often have difficulty identifying targeted schemes. Suggestions by NITI Aayog for conditional cash transfers to targeted SC households have not found favour, while transferring unutilised funds to nodal ministries for SC/ST welfare have raised concerns. It all smells of scattershot allocation and management.

In 2024-25, the allocated amount was ₹1.66 lakh cr. Instead of individual ministries funding or developing targeted schemes, the money could be treated as a grant, contribution or guarantee. Each central ministry would use the earmarked sum to fund programmes and schemes, developed by the ministry for social justice, focused on enabling economic mobility and delivering social welfare. These programmes/schemes could range from seed money for SC-run innovative businesses, education grants, investment in healthcare in unserved/underserved areas with high SC population. This will minimise duplication, widen the pool of beneficiaries, and lead to better assessment of programme deliverables.