The Congress government in Karnataka is facing scrutiny as reports emerge of approximately ₹900 crore in unpaid dues to the state's transport corporations under the Shakti scheme, which provides free bus travel for women. This flagship program, one of the Congress party's key election promises, has enabled women to travel for free on non-luxury buses across the state since its launch on June 11, 2023.
The Shakti scheme was introduced shortly after the Congress government came to power and has quickly become a popular initiative. The government committed to compensating the four state-run road transport corporations for their operational costs incurred due to the scheme. These corporations are the Bangalore Metropolitan Road Transport Corporation (BMTC), Karnataka State Road Transport Corporation (KSRTC), North West Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC).
However, the accumulating arrears have raised concerns about the financial management and sustainability of the scheme. As of October, the total balance amount payable to these corporations was ₹1,694.42 crore. Specifically, the government owes BMTC ₹280.82 crore, KSRTC ₹683.21 crore, NWKRTC ₹394.7 crore, and KKRTC ₹335.67 crore. While ₹6,543 crore has been paid to the four transport corporations since the scheme's launch until November of this year, the outstanding amount continues to be a point of contention.
The scheme's financial implications have been a topic of discussion, especially considering Karnataka's overall financial status. The Economic Survey of Karnataka 2024-25 noted that the state's rising public debt, with an expected addition of ₹1.16 lakh crore in liabilities during 2025-26, is a cause for concern. Total liabilities are projected to reach ₹7.64 lakh crore by the end of 2025-26. The survey also highlighted that the state has shifted from a revenue surplus to a revenue deficit, necessitating difficult decisions regarding revenue expenditure. The fiscal deficit for 2025-26 is targeted at 2.9% of GSDP (₹90,428 crore), which is higher than the revised estimates for 2024-25.
Since the launch of the Shakti scheme, over 350.9 crore free bus rides have been undertaken, costing the state exchequer ₹8,481.68 crore. Transport officials have stressed the importance of timely reimbursements to ensure the smooth functioning of public transport services. The transport corporations calculate the cost based on the distance traveled by women, using zero-value tickets issued to them. The monthly cost for the corporations is approximately ₹250 crore.
Adding to the challenges, the Karnataka government recently faced a controversy regarding claims of world record recognitions for the Shakti scheme and KSRTC. Chief Minister Siddaramaiah shared posts on social media platform X (formerly Twitter), asserting that the state had achieved global benchmarks for free rides for women, certified by the London Book of World Records. However, the authenticity of these certificates was quickly questioned, with allegations that the certifying agency had been dissolved and that the certificates contained errors. The posts were later withdrawn to avoid distraction from the scheme's accomplishments.
Despite these challenges, the government maintains that the Shakti scheme and other guarantee programs are strategic investments in social and economic principles. The Karnataka Budget for 2025-26 allocates significant funds to these welfare schemes, with a focus on comprehensive development across various sectors.
