Now Reading: Karnataka guarantees devour Mysuru civic funds, untied grants fall to Rs 3 crore
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Karnataka guarantees devour Mysuru civic funds, untied grants fall to Rs 3 crore
Karnataka guarantees devour Mysuru civic funds, untied grants fall to Rs 3 crore
Mysuru City Corporation has received only Rs 3 crore in untied grants for the 2026-27 financial year, down from Rs 43 crore a decade ago, according to an analysis by Bengaluru-based organisation Janaagraha. The sharp decline is linked to Karnataka's practice of accounting for the cost of flagship guarantee schemes such as Gruha Lakshmi and Anna Bhagya as money devolved to local bodies, leaving virtually no discretionary funds for urban infrastructure.
Gruha Lakshmi, which pays Rs 2,000 per month to 1.22 crore women, has a budget outlay of Rs 28,608 crore. Anna Bhagya provides 10 kg of free rice per month to BPL families. The state finance department deducts the cost of these schemes from the total pool meant for local governments before distributing the remainder. This accounting method means the cut is recorded as a payment, not a reduction, making it difficult to challenge politically. Janaagraha said no other state in its sample, Tamil Nadu, Kerala and Odisha, uses the same practice.
Indian Opinion Analysis
The core issue is not the popularity of the guarantee schemes but how Karnataka budgets for them. By classifying scheme outlays as 'devolution' to local bodies, the state circumvents the constitutional requirement to transfer a share of taxes to urban and rural local governments. The Karnataka State Finance Commission's recommendations, which determine this share, appear to have been sidelined. The practical effect is that a city of 10 lakh people has Rs 3 crore to fix drains, roads and lakes for a full year, roughly Rs 30 per person. The next indicator to watch is whether the High Court or the State Finance Commission intervenes before the next budget.
Source: swarajyamag.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
