Maharashtra Diverts SC/ST Funds for Namo Shetkari Scheme After Ladki Bahin
UPSC / SSC current affairs note · Polity
Why in news
The Maharashtra government has decided to divert ₹1,300 crore from SC/ST funds to finance the Namo Shetkari Mahasanman Nidhi Yojana (NSMNY), a farmer cash assistance scheme. This follows a similar diversion of over ₹750 crore per month for the Ladki Bahin scheme, raising concerns about the misuse of funds meant for marginalized communities.
Background
The NSMNY was announced in June 2023, modelled on the PM Kisan Yojana, providing ₹2,000 every four months to eligible farmers. The state has been facing fund shortfalls and has resorted to diverting mandatory allocations for SCs and STs, as per Finance Commission guidelines, to fund populist schemes.
Key facts
Maharashtra government to divert ₹1,300 crore from social justice and tribal development departments to fund NSMNY.
Earlier, over ₹750 crore per month was diverted from SC/ST funds for the Ladki Bahin scheme.
NSMNY covers more than nine million farmers with an annual expenditure of about ₹5,500 crore.
Eligible farmers receive ₹2,000 every four months under both NSMNY and PM Kisan Yojana.
Two NSMNY instalments expected in March and July are pending; release awaits fund diversion completion.
The state will deduct the ₹6,000 annual NSMNY benefit from the proposed farm loan waiver scheme.
Annual budget of social justice department is around ₹23,000 crore; tribal development department exceeds ₹15,000 crore.
Finance Commission 2004 guidelines mandate proportionate allocations for SCs/STs, which should not be diverted or lapse.
Social welfare department officials say diversions have reduced funds for welfare projects like Vasti Sudhar Yojana and scholarships.
Prelims pointers
- Namo Shetkari Mahasanman Nidhi Yojana (NSMNY) - Maharashtra state scheme
- PM Kisan Yojana - central scheme
- Ladki Bahin scheme - Maharashtra
- Finance Commission guidelines (2004) on SC/ST allocations
- Scheduled Castes (SCs) and Scheduled Tribes (STs) funds
- Vasti Sudhar Yojana - welfare project
- Farm loan waiver scheme - Maharashtra
Mains angles
- Discuss the ethical and constitutional implications of diverting SC/ST funds for other schemes.
- Examine the fiscal management of state governments in funding welfare schemes.
- Critically analyze the impact of fund diversion on the welfare of SC/ST communities.