Cabinet Ranks Surge As SC/ST Corporations Face Major Fund Cuts In Karnataka | Exclusive

Last Updated:February 11, 2026, 16:39 IST

The Siddaramaiah administration faces mounting criticism for elevating over 100 party workers to cabinet status, granting them high-end perks and ministerial privileges.

There is a stark disparity in the fiscal priorities of the Karnataka government, where a surge in cabinet-rank appointments for political leaders contrasts sharply with a declining trend in funding for Scheduled Caste and Scheduled Tribe development corporations. Documents exclusively accessed by CNN-News18 reveal that at least seven key corporations dedicated to marginalised communities have seen their financial lifelines either slashed or stagnated since the Siddaramaiah-led Congress government took office. This revelation comes as the state administration faces mounting criticism for elevating over 100 party workers to cabinet status, granting them high-end perks and ministerial privileges while essential welfare programs struggle for basic liquidity.

The data points to a systemic reduction across multiple sectors of Dalit and tribal development. The Dr BR Ambedkar Development Corporation, which received 218.50 crore under the BJP in 2022-23, saw its allocation drop to Rs 107 crore the following year and currently stands at Rs 155 crore for 2025-26, with only Rs 89.73 crore released to date. Similarly, the Karnataka Thanda Development Corporation saw its funding halved from Rs 133.50 crore under the previous regime to a mere Rs 66.95 crore in the 2023-24 fiscal year. Other bodies, including the Karnataka Adijambava and Bhovi Development Corporations, report a significant gap between promised budget figures and the actual funds hitting their accounts, often leaving them with less than 50 per cent of their intended resources as the financial year nears its conclusion.

Defending the administration’s fiscal strategy, Congress MLA HC Balakrishna admitted to the disparity while speaking to CNN-News18, though he categorised it as a necessary adjustment for the government’s flagship guarantee schemes. “It’s a slight disparity," Balakrishna stated, adding that “overall allocation to SC/ST communities remains the same." He maintained that the funds were being utilised to ensure the broader success of social welfare guarantees that also benefit these specific communities.

However, the opposition has characterised this shift as a betrayal of the very communities that helped propel the Congress to power. BJP Spokesperson GS Prashanth slammed the government for what he termed a “misuse of taxpayer money" to fund political gratification. “There are two issues to be looked at: one, definitely BJP stood for the welfare of ST SCs and allotted a good chunk of the budget," Prashanth said. “What the Congress government has done is they have reduced the allocation and used the funds meant for SC/ST development for other purposes, roughly about Rs 25,000 crore in the last two years. It is very clear that Congress’s statement about standing up for SC/STs is only for the paper; in reality, they do not believe in empowering them."

The controversy is further fueled by the timing of these cuts, as the government continues to dole out ministerial ranks to its cadre despite warnings from the Chief Minister’s own economic advisor regarding the state’s dry coffers. Prashanth further added, “At this juncture, to dole out to party workers… taxpayer money is being misused. It is very shameful that Congress has resorted to appease their party workers by using taxpayer funds. Siddaramaiah and DK Shivakumar have mortgaged the interest of the people of Karnataka." As the debate intensifies, the government remains under pressure to explain why political perks appear to be taking precedence over the direct financial empowerment of the state’s most vulnerable populations.

News india Cabinet Ranks Surge As SC/ST Corporations Face Major Fund Cuts In Karnataka | Exclusive

Read More