‘SC-ST funds are never released in full by the finance department’

MUMBAI: Although the recent diversion of ₹746 crore meant for the scheduled castes (SCs) and scheduled tribes (STs) to the Ladki Bahin scheme has stirred up a controversy, data shows that diversion and short spending in the social justice and tribal development departments is a routine affair. These departments overseeing the welfare of SCs and STs respectively have been spending less than 75% of their budgetary allocation over the years on account of the finance department not releasing the full funds to them.

The order to divert ₹410.30 crore of the social justice department and ₹335.70 crore of the tribal development department to the Ladki Bahin Yojana was given by the government on Friday. This angered the SCs and STs, as the budget meant for these communities is in proportion to their population and cannot be diverted to other departments. The government’s move led to social justice minister and Shiv Sena leader Sanjay Shirsat calling Ajit Pawar the “finance department’s Shakuni” without naming him.

Shirsat’s words have angered the NCP. Hassan Mushrif, NCP leader and medical education minister, on Monday said that Shirsat should have brought the diversion to the notice of the finance department rather than going public. “Ajit Pawar is not diverting the money for his own benefit neither can he conjure up funds from nowhere,” he said. “Shirsat should refrain from making such extreme remarks.”

However, while the diversion of SC-ST funds has led to fireworks in political circles, budget data shows that this has been happening for quite some time. The spending on SCs in 2024-25 was ₹21,122 crore out of a budgetary allocation of ₹28,118, and ₹16,948 crore for STs against an allocation of ₹22,208. Similarly, in FY 2023-24, ₹20,672 crore was spent on SCs against an outlay of ₹28,831 crore while ₹15,315 crore was spent on STs against an allocation of ₹21,013 crore. Expenditure, thus, has been ranging between 72% and 75% of the allocation to the two departments.

“The social justice department should get 11.8% of the development budget without any cuts and diversions,” said an official. “Similarly, the STs should get 9.4% outlay. But the actual expenditure is far less. The two departments have not been able to spend the outlay, as the full allocation is never released by the finance department. This largely affects scholarships and the construction and upkeep of residential schools. This year, we had decided to spend ₹1,200 crore on the construction of hostels, but the diversion of ₹410 crore in the first month of the financial year may affect our ambitious programme.”

Shirsat, who had alleged that ₹7,000 crore was diverted from his department in the last financial year, admitted that the release of money for scholarships gets routinely delayed due to diversions. “We are not opposing the Ladki Bahin Yojana, but we want the chief minister to make a full allocation as per the norms for SCs,” he said.

The Finance Commission, in its 2004 guidelines, had stated that SCs and STs should get a budget outlay in proportion to their population and that this should not be diverted or lapsed (returned to the government). Andhra Pradesh, Karnataka and Telangana have passed a law for budgetary allocation to these classes in proportion to their population and have prohibited lapse of the outlay in the event of its non-utilisation. Shirsat said he would demand a similar law for Maharashtra from the CM.

Rupesh Keer of Samarthan, an NGO which studies the state budget, said, “Even the CAG, in its report last year, rapped the government for not releasing the budget meant for the backward classes. The finance department is the one responsible for diverting funds and short spending.”

Ladki Bahin payout will not be upped: Shirsat

Social welfare minister Sanjay Shirsat on Monday said that the Ladki Bahin stipend could not be raised to ₹2,100. This is for the first time that a minister has said on record that the promise made in the assembly elections last year will not be fulfilled. “The payout cannot be increased because of the financial burden on the exchequer,” he said. “We are, however, committed to continuing the scheme, with borrowed money if need be, as it has helped us win the elections.”

All the three ruling parties had announced the hike in the payout, and the government was expected to declare this in the budget presented in March. However, the CM and both deputy CMs said the hike would be implemented at the appropriate time. Ajit Pawar went a step further and recently said that he never had promised to increase the payout to ₹2,100.