Bengaluru: The govt is facing renewed pressure from governing Congress members to review its flagship guarantee schemes ahead of the state budget on March 6, with some party legislators and ministers arguing that benefits should be targeted only at economically weaker sections to reduce the fiscal burden. Many Congress MLAs have said the schemes, a cornerstone of the party’s thumping victory in the 2023 assembly polls, are too broad and even benefit households that do not require state support. Some MLAs have also floated a “give it up” approach, under which affluent beneficiaries voluntarily opt out so that resources can be redirected to the needy. The debate has intensified following recent Supreme Court observations on state-funded freebies, raising questions over whether chief minister Siddaramaiah‘s govt will introduce riders or eligibility filters. The five guarantees — free electricity up to 200 units for all households under Gruha Jyoti, free bus travel for women under Shakti, monthly cash transfers to women heads of households under Gruha Lakshmi, unemployment assistance under Yuva Nidhi, and free food grains under Anna Bhagya — cost the state between Rs 55,000 crore and Rs 60,000 crore annually. Public works minister Satish Jarkiholi last year said excluding the wealthy from the schemes could save at least Rs 10,000 crore a year. Industry and infrastructure minister MB Patil has also supported revising eligibility norms to focus on below-poverty-line households. Several MLAs have raised concerns in recent legislature party meetings as well. The fiscal debate over the guarantees dates to the govt’s first year in office. A senior bureaucrat had earlier suggested implementing the schemes in phases, citing an annual cost of about Rs 50,000 crore, but Congress party brass opted for a full rollout, calling the guarantees a key poll commitment. The state has since undertaken multiple revenue-raising measures, including hikes in bus fares, fuel prices, property guidance values, stamp duty, liquor prices and vehicle cess, along with proposals to increase water tariffs, milk prices and public transport fares. The govt also introduced a mineral rights tax law and a one-time settlement scheme, which have had limited impact. In the 2025–26 budget, the govt allocated about Rs 51,034 crore for the five guarantee schemes, slightly lower than the Rs 52,009 crore provided in 2024–25. The total estimated expenditure for 2025–26 was pegged at just over Rs 4 lakh crore, with revenue expenditure of about Rs 3.1 lakh crore, capital expenditure of Rs 71,336 crore, and Rs 26,474 crore for loan repayment. The state planned to borrow about Rs 1.2 lakh crore, with total liabilities projected to rise to Rs 7.6 lakh crore. Last year, several ministers and MLAs publicly flagged concerns about shrinking funds for constituency-level development projects, but Siddaramaiah ruled out scrapping the schemes. With a series of local body polls, including Greater Bengaluru Authority polls, due this year, a debate is unfolding again. While some MLAs argue limiting benefits would provide headroom for development spending, the govt credits the guarantees with boosting economic activity. “These are strategic investments made on economic and social principles. This has helped the state improve its per capita income,” Siddaramaiah had said.
