Karnataka guarantee schemes: ₹100 crore misuse found, Shivakumar orders taluk-level review
Synopsis
Karnataka’s guarantee schemes — costing ₹51,000 crore a year — are under an internal audit after Deputy CM D.K. Shivakumar admitted roughly ₹100 crore reached ineligible hands. The admission is politically significant: it hands the opposition a handle while the government simultaneously blames the Centre for disrupting rice distribution under Anna Bhagya.
Key Takeaways
Shivakumar confirmed approximately ₹100 crore in misuse across Karnataka’s guarantee schemes, with benefits going to deceased or ineligible beneficiaries.
The state government has launched a taluk-level review of all beneficiary records to ensure funds reach genuine recipients.
Rice distribution under the Anna Bhagya scheme has reportedly been irregular for two months; Shivakumar blamed the Centre for not releasing grain allocations.
Commercial LPG cylinder prices were hiked multiple times in early 2025, including a ₹993 increase on 1 May , according to Shivakumar.
Karnataka’s five guarantee schemes together cost the state approximately ₹51,000 crore annually.
Karnataka Deputy Chief Minister and State Congress President D.K. Shivakumar on Monday, 25 May confirmed that the state government had discovered misuse in its flagship guarantee schemes, with an estimated ₹100 crore reportedly diverted to ineligible recipients. Speaking at a joint press conference in Bengaluru alongside Chief Minister Siddaramaiah and All India Congress Committee (AICC) General Secretary and Karnataka in-charge Randeep Singh Surjewala, Shivakumar said a comprehensive review of beneficiary records was now underway across every taluk in the state.
Scale of Misuse and Verification Drive
Shivakumar disclosed that a portion of the scheme benefits had reached the wrong hands due to deaths of registered beneficiaries and incorrect phone numbers on record. “Some beneficiaries have died, and around ₹100 crore has reportedly gone to others due to misuse. In some cases, incorrect phone numbers have been provided. We are verifying whether the benefits are reaching genuine beneficiaries,” he said.
He added that discussions were ongoing on collecting updated beneficiary data, with ground-level reviews being conducted at the taluk level. The state spends approximately ₹51,000 crore annually on its five guarantee schemes, making the integrity of beneficiary rolls a significant fiscal concern.
Anna Bhagya Disruption Blamed on Centre
Shivakumar pushed back against allegations that rice distribution under the Anna Bhagya scheme had been irregular for the past two months, attributing the disruption to the Union government. “The Central government is not releasing rice. This is happening not only in Karnataka but also in other states ruled by our party,” he alleged.
The charge escalates an existing Centre-state standoff over food grain allocations and is likely to draw a response from the Bharatiya Janata Party (BJP), which governs at the Centre.
Shivakumar Targets Centre on Price Hikes
The Deputy Chief Minister also took aim at the Centre over rising commercial LPG cylinder prices, calling the increases a “curse on people’s lives.” He cited a series of hikes in 2025: ₹28 on 1 March, ₹114.50 on 7 March, ₹49 on 23 March, between ₹195 and ₹218 on 1 April, and ₹993 on 1 May. He claimed these hikes had forced many hotels to partially shut operations.
Shivakumar argued that the Centre had raised fuel prices despite lower crude oil prices in the international market, contrasting this with what he described as the Karnataka government’s efforts to cushion citizens through its guarantee schemes.
Congress Claims National and Global Recognition
Shivakumar asserted that Karnataka’s guarantee schemes had earned appreciation beyond state borders, claiming they had been praised even by the United Nations — though he did not specify the nature or source of that recognition. He framed the schemes as a direct counter to what he called the BJP-led Centre’s economic burden on ordinary citizens.
What Comes Next
The state government has not announced a deadline for completing the taluk-level beneficiary audits or specified what action will be taken against those found to have received benefits fraudulently. With ₹51,000 crore at stake annually, the outcome of the review will be closely watched by both fiscal watchdogs and opposition parties. Any tightening of eligibility criteria could affect lakhs of current beneficiaries across Karnataka.
Point of View
Yet the government has given no timeline or accountability mechanism for what happens after irregularities are confirmed. Meanwhile, blaming the Centre for the Anna Bhagya disruption, while politically convenient, does not address why the state has not independently secured grain supplies after two months of reported irregularity. With ₹51,000 crore in annual outgo, the credibility of Karnataka’s guarantee model now hinges on whether this review produces verifiable corrections — or becomes another press conference statistic.
NationPress
14 Jul 2026
Frequently Asked Questions
What misuse was found in Karnataka’s guarantee schemes?
Deputy CM D.K. Shivakumar confirmed that approximately ₹100 crore had reportedly been diverted to ineligible recipients, including deceased beneficiaries and those with incorrect contact details on record. The state government has initiated a taluk-level review to verify that benefits are reaching genuine beneficiaries.
What is the Anna Bhagya scheme and why has it been disrupted?
Anna Bhagya is a Karnataka government scheme that provides subsidised or free rice to eligible households. Shivakumar alleged that distribution had been irregular for about two months because the Central government had not released the required grain allocations, a situation he said was also affecting Congress-ruled states elsewhere.
How much does Karnataka spend on its guarantee schemes?
The Karnataka government spends approximately ₹51,000 crore annually across its five flagship guarantee schemes. The scale of the outlay makes the ongoing beneficiary audit a significant fiscal and governance exercise.
What were the commercial LPG price hikes mentioned by Shivakumar?
Shivakumar cited five increases in commercial LPG cylinder prices in early 2025: ₹28 on 1 March, ₹114.50 on 7 March, ₹49 on 23 March, between ₹195 and ₹218 on 1 April, and ₹993 on 1 May. He blamed these hikes on the Centre and said they had forced partial closures of hotels.
What action will be taken against those who misused scheme benefits?
The government has not yet specified what action will follow the taluk-level review. Shivakumar indicated that verification is ongoing but provided no deadline for completion or details on recovery or penal measures for fraudulent recipients.
