Unutilised Welfare Funds for Scheduled Castes in 2024-25

In the financial year 2024-25, portion of welfare funds allocated for Scheduled Castes went unutilised. Approximately one-fourth of the ₹1.66 lakh crore earmarked remained unused, marking the lowest utilisation rate in a decade. The primary reasons for this decline include the inability of various ministries to identify targeted schemes and restrictions imposed by the model code of conduct during parliamentary elections.

About the Developmental Action Plan for Scheduled Castes

The Developmental Action Plan for Scheduled Castes (DAPSC) was introduced to improve the welfare of Scheduled Castes in India. Initially known as the Special Component Plan (SCP), it was established in 1979. The plan mandates that certain central ministries allocate a percentage of their budgets for schemes aimed at SC welfare. Over the years, the nomenclature evolved, reflecting changes in policy and focus.

Current Fund Allocation and Utilisation

In 2024-25, 39 central ministries were responsible for the DAPSC. Of the total allocation, only 74.74% was utilised. This represents a notable decrease compared to previous years, where average utilisation ranged from 85-90%. The lowest recorded utilisation was in 2014-15, at 59.42%. Ministries such as coal and telecommunications have struggled to identify specific welfare schemes, contributing to the low utilisation rate.

Challenges Faced by Ministries

One of the major challenges is the identification of targeted schemes that effectively serve the SC community. Many ministries have allocated funds to generic schemes, which do not address the specific needs of Scheduled Castes. This has led to a situation where budget estimates are often revised downward, as the funds cannot be effectively utilised.

Impact of the Model Code of Conduct

The model code of conduct, implemented during parliamentary elections, has further exacerbated the issue. It restricts the sanctioning of new schemes, resulting in delays in fund utilisation. In 2024-25, the code was in effect for at least two months, hindering the approval process for various welfare initiatives.

Future Directions for Welfare Schemes

The Niti Aayog has proposed direct financial transfers to SC households with monthly incomes below ₹5,000. However, this proposal has yet to be realised. The Ministry of Social Justice and Empowerment is now tasked with closely monitoring progress and identifying viable schemes across ministries.

Historical Context of Scheduled Caste Welfare

The commitment to Scheduled Caste welfare has evolved over decades. The SCP was transformed into the Scheduled Castes Sub Plan (SCSP) in 2006 and later into the current DAPSC. The number of ministries involved has increased , but the effectiveness of fund utilisation remains a pressing concern.

Questions for UPSC:

1. Critically analyse the impact of the model code of conduct on welfare fund utilisation for Scheduled Castes.
2. Explain the changes in the nomenclature of welfare schemes for Scheduled Castes and their implications.
3. What are the barriers to effective implementation of welfare schemes for Scheduled Castes? Discuss with examples.
4. What is the role of the Niti Aayog in enhancing welfare for Scheduled Castes? How can it improve fund utilisation?

Answer Hints:

1. Critically analyse the impact of the model code of conduct on welfare fund utilisation for Scheduled Castes.

1. The model code of conduct restricts the announcement of new schemes during elections, delaying approvals.
2. In 2024-25, it was in effect for at least two months, hindering fund sanctioning.
3. This resulted in drop in fund utilisation, with only 74.74% of allocated funds used.
4. The code aims to ensure fair elections but inadvertently affects ongoing welfare initiatives.
5. Past trends show similar impacts in previous election years, indicating a recurring issue.

2. Explain the changes in the nomenclature of welfare schemes for Scheduled Castes and their implications.

1. The scheme started as the Special Component Plan (SCP) in 1979, focusing on SC welfare.
2. It evolved to Scheduled Castes Sub Plan (SCSP) in 2006, reflecting a broader scope.
3. Renamed to Allocation for Welfare of Scheduled Castes and then to DAPSC, indicating ongoing policy adjustments.
4. Each name change aimed to enhance focus and accountability in fund allocation.
5. These changes have increased the number of ministries involved, but effective implementation remains a challenge.

3. What are the barriers to effective implementation of welfare schemes for Scheduled Castes? Discuss with examples.

1. Inability of ministries to identify targeted schemes that address SC needs is a primary barrier.
2. Many ministries allocate funds to generic schemes, diluting the focus on SC-specific welfare.
3. For instance, ministries like coal and telecommunications have struggled to propose effective schemes.
4. Budget estimates often get revised downward due to unutilised funds, creating inefficiencies.
5. The lack of coordination among ministries hampers the overall effectiveness of the DAPSC.

4. What is the role of the Niti Aayog in enhancing welfare for Scheduled Castes? How can it improve fund utilisation?

1. The Niti Aayog proposes direct financial transfers to SC households, aiming for targeted support.
2. It assesses the effectiveness of current schemes and recommends improvements for better outcomes.
3. It can enhance fund utilisation by promoting innovative schemes that directly address SC needs.
4. By collaborating with ministries, it can streamline processes for quicker fund disbursement.
5. Monitoring and evaluation frameworks can be established to ensure accountability and transparency.