New Delhi: Karnataka Chief Minister Siddaramaiah is assessing a proposal to eliminate fraudulent Below Poverty Line (BPL) card holders to reduce the disproportionate number of Karnataka’s population which excessively relies on subsidies, ThePrint has reported.
Speaking to reporters in Bagalkote on Sunday, the chief minister said that the government was looking into retrieving cards that have been issued to ineligible individuals. He said that the food department was checking these cases. Final decision is yet to be taken. “Ineligible individuals will not retain cards, but eligible beneficiaries will not be denied their entitlements,” Siddaramaiah underlined.
If the number of BPL cards issued is any indication, then at least 70 per cent of the state’s population is below the poverty line.
Several guarantee schemes of the Congress government also depend on BPL cards to offer benefits in programmes such as Anna Bhagya, Gruha Lakshmi, and Gruha Jyothi.
According to Siddaramaiah, those who pay income tax or are employed in government service should not possess BPL cards; however, this is not the case, data indicates. But, almost eight out of 10 residents in the state live below the poverty line, even though Karnataka accounts for almost half of the country’s software exports and invites a significant portion of foreign direct investment (FDI).
As per the economic survey, Karnataka’s Gross State Domestic Product (GSDP) went up from Rs 22.70 lakh crore in 2022-23 to Rs 25.01 lakh crore in 2023-24, suggesting a growth rate of 10.2 per cent.
In June, the Karnataka government formed an administrative reforms commission, headed by senior Congress leader RV Deshpande, to carry out a review of the number of BPL cards issued and identify ineligible persons who are claiming benefits meant solely for the economically marginalised.
Congress leader and Administrative Reforms Commission chairman RV Deshpande told ThePrint, “In Karnataka, which is one of the progressive states, about 75-80 percent of its population are BPL card holders. It can’t be believed.”
What do the numbers reflect
According to data from the Department of Food, Civil Supplies & Consumer Affairs, as of September 20, 2024, over 1.25 crore households and 4.34 crore persons in the state of Karnataka were identified as beneficiaries of the Antyodaya Anna Yojana (AAY) and the Priority Households (PHH) schemes, respectively. Both these schemes are central initiatives under the National Food Security Act (NFSA).
In Karnataka, there are 10.72 lakh AAY ration card holders and 1.028 crore PHH ration card holders. Each AAY household is supposed to get 35 kg of food grains per month, while each PHH beneficiary is entitled to 5 kg of food grains monthly at a concessional rate.
The Siddaramaiah-led administration, along with the governments in the past, identify as beneficiaries of Karnataka government schemes those ineligible to pay income tax or GST, as well as those holding AAY or PPH cards. The only exception is the Congress’s flagship Shakti scheme, which offers free bus rides for women and is available to any woman.
Economists say that this larger issue adds to the state’s increasing expenses, especially since the Congress came to power and implemented all five of its flagship ‘promises’ or ‘guarantees.’ There is very little scrutiny beyond the possession of BPL and AAY cards when it comes to claiming benefits from these schemes.
Professor Abdul Aziz, an economist with the National Law School of India (NLSUI), was quoted as saying by ThePrint, “There is an obvious burden on the economy. The implementation of these schemes, brought in for political purposes, has seen the falling back of development. The guarantees are good from a welfare point of view but not at this magnitude.”
As of August, the state government reports that all five guarantee schemes together provide Rs 4,000 to Rs 5,000 per family per month through direct or indirect benefits.
In his Independence Day speech, Siddaramaiah announced that women made 270 crore free trips across the state under the Shakti Scheme, amounting to Rs 6,541 crore.
Under the Gruha Lakshmi Yojana, which offers Rs 2,000 monthly to the woman head of the household, Rs 25,259 crore has been disbursed to 1.2 crore women since its launch in 2023. This scheme also does not require beneficiaries to have a BPL or AAY card.
Under the Anna Bhagya scheme, state expenditures have reached Rs 7,763 crore. While the scheme originally provides 10 kg of free rice, the state government has been distributing cash for 5 kg instead due to a rice crunch.
Under the Gruha Jyothi scheme for free power, as many as 1.60 crore families have got Rs 8,844 crore as benefits. Besides, over the past year, Rs 91 crore has been distributed to 1.31 lakh jobless graduates and diploma holders until they find a job.
What the economic survey said
In the Economic Survey of Karnataka 2023-24, the government pointed out that “subsidies in Karnataka are higher than any comparable states and within that non-merit component appear to be larger” and rationalising them would make resources available for other development and infrastructure projects.
There have been cases where income certificates have been issued by village accountants, who may wrongly introduce errors, allowing ineligible persons to obtain the cards. Officials pointed out that dual income certificates, where both partners are earning, aggravate the entire problem. Besides, there are local reports of families selling the 5 kg of rice given under the Anna Bhagya scheme. During earlier reviews, 3.38 lakh ineligible AAY and PHH cards were identified and either cancelled or converted to Non-Priority Households between April 2022 and September 2023.
