MILK PRODUCERS AWAIT PAYMENTS WORTH ₹602CR; GOVT SAYS FACING FUND CRUNCH

Karnataka’s milk producers are grappling with a staggering backlog in payments amounting to ₹602.84 crores, affecting approximately 8,92,000 people, including those in the home district of chief minister Siddaramaiah. This financial strain has been exacerbated by the state’s ambitious implementation of the five guarantee schemes, which have placed immense pressure on the government’s finances.

In a written response to Doddaballapur MLA Dheeraj Muniraju on a question on the matter in Karnataka assembly on Thursday, animal husbandry and dairy minister K Venkatesh revealed that the state government has been unable to disburse incentives to milk producers due to the financial constraints imposed by the five guarantee schemes.

“In the financial year 2024, out of the allocated grant, only ₹324.99 crore has been released. Out of this, ₹297.45 crore has been paid as an incentive to milk producers from the general category for the months of September 2023, March 2024, and April 2024. (Due to budget shortfalls and technical issues, it was not possible to pay for the months from October 2023 to February 2024),” read the reply.

The five guarantee schemes, include the Gruha Jyoti Yojana (providing free electricity up to 200 units per month), Anna Bhagya Yojana (offering free food grains to families below the poverty line), Gruha Lakshmi Yojana (financial assistance to women heads of families), Yuva Nidhi Yojana (unemployment benefits to young graduates), and Shakti Yojana (free public transport for women).

While these programmes aim to address poverty and social inequality, they have significantly strained the state’s financial resources, according to Congress MLAs.

As per the document, not a single rupee was distributed to milk producers in November, December, January, or February 2024, leading to a total arrear of ₹426.38 crores for these four months.

According to the government’s response, in March 2024, ₹101.64 crore was due, but only ₹60 crore were actually disbursed. Similarly, ₹95.25 crores was supposed to be paid in April, but only ₹2.83 crores were paid out.

In May 2024, no payments were made, leaving ₹106.97 crores outstanding for that month. Between September 2023 and May 2024, only ₹297.44 crores have been paid out of the total amount due.

The state’s ambitious welfare schemes have placed a considerable burden on its budget, forcing the government to prioritise these programmes over other essential payments.

Minister K Venkatesh acknowledged this predicament in his response, stating that the increased number of milk producers and the quantity of milk collected by the Karnataka Milk Federation (KMF) have further exacerbated the fiscal challenges. “To address this, the department has submitted a proposal to the finance department, seeking the release of additional grants to clear the backlog,” he said.

There are voiced within the Congress against these schemes, Basavaraj Rayareddy, who serves as the financial advisor to Siddaramaiah, stirred controversy last week by claiming that Karnataka’s guarantee schemes have left the state without sufficient funds for development projects.

Speaking at a farmers’ gathering after initiating work on a lake in Mangaluru village, Yalburga taluk, Rayareddy remarked that these guarantee schemes are hindering the state’s progress.

“Several legislators have been requesting funds for development initiatives in their constituencies, but the government simply doesn’t have the necessary finances,” Rayareddy explained.

“We are allocating nearly ₹65,000 crore to these guarantee schemes. As the financial advisor, I have to find ways to secure grants,” he added.

He emphasised that the guarantee schemes are financially straining the state. “People expect development, but honestly, there’s no money available,” he continued.

Meanwhile, deputy chief minister DK Shivakumar disagreed with Rayareddy’s assessment, insisting that the government is not experiencing any financial difficulties because of the guarantee schemes.

“The guarantee schemes are not depleting our resources, and we intend to maintain them,” Shivakumar asserted, responding to Rayareddy’s remarks. “These schemes were not implemented for electoral gain; they aim to improve the lives of people who have been severely impacted by inflation,” he stated.

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2024-07-27T00:49:22Z dg43tfdfdgfd