Karnataka Government Allocates Rs 244.10 Crore for Annabhagya Scheme
The Karnataka government has announced the approval of Rs 244.10 crore to address additional costs, including wholesale and retail margins as well as transportation expenses, under the Annabhagya scheme for the period from February to May 2025.
This new fund allocation is in addition to a prior grant of Rs 2,082.99 crore, which was designated for purchasing an extra five kg of rice per beneficiary and covering related expenses during the same four-month timeframe, according to a government order released on Monday.
This financial decision follows the announcement by lorry owners responsible for transporting rice and other food supplies to ration shops across Karnataka, who declared an indefinite strike starting Tuesday.
The order also noted that Rs 21.79 crore from the previous funding remains unutilized with the Karnataka Food and Civil Supplies Corporation Limited in Bengaluru, which has led to a gap in funding necessary for incidental expenses.
In response, the government approved the Rs 244.10 crore allocation specifically to assist with wholesale and retail margins as well as transportation costs, excluding the costs associated with rice procurement. This approval was formalized in an order on Monday.
The financial resources will be disbursed under the Annabhagya Scheme for the fiscal year 2025–26 and will be managed through the Khajane-2 financial management system, transferring funds directly from the administrative department to the Chief Accounts Officer for the Bengaluru Urban District, as per the government order.
Senior government officials assured that there is no shortage of funds, reporting that Rs 199 crore has already been released, with plans to disburse the remaining amount within the next two days.
On Tuesday, GR Shanmukhappa, President of the State Lorry Owners’ Association, publicly declared an indefinite strike due to unpaid dues amounting to Rs 250 crore. In a video statement, he emphasized the financial strain on lorry owners and stressed the importance of the government settling these payments promptly.
Criticism has arisen on social media, particularly from R Ashoka, Leader of Opposition in the Karnataka Legislative Assembly, who accused Chief Minister Siddaramaiah of withholding Rs 250 crore owed to lorry owners over the past six months. Ashoka raised concerns about how lorry owners would manage wages and operational costs amidst these financial setbacks.
Additionally, BJP State President BY Vijayendra has urged the Congress government to resolve these longstanding payment issues and respect the contributions of lorry owners. He criticized the current administration for its ongoing fiscal mismanagement, highlighting a pattern of unmet welfare promises.
