Bengaluru: A state government-appointed commission on administrative reforms in Karnataka has stated that Rural Development & Panchayat Raj (RDPR) department projects are not being implemented on “mission-mode” despite inflow of funds. It has recommended that several state level schemes be subsumed under central projects to avoid duplication and fragmented planning.
Senior Congress leader and Karnataka Administrative Reforms Commission-II (KARC-II) chairman R. V. Deshpande said that core service areas are suffering.
“In core service areas (rural roads, water supply, Panchayat capacity building), there is no clear mission-mode expansion despite high Central and Finance Commission inflows. State-level schemes supporting rural roads, drainage, minor works, community assets, and village infrastructure, whose objectives are substantially covered under MGNREGA (now VB-G RAM G), PMGSY, or Finance Commission grants, may be subsumed under these schemes to avoid duplication and fragmented planning,” the Deshpande-led committee has recommended to the Siddaramaiah-led government.
The KARC-II recommendations also advised against any new schemes. “It is not recommended to launch new schemes for an indefinite period without clearly defined, measurable targets—such as the intended number of beneficiaries, coverage area, and expected outcomes,” the Deshpande-led commission said.
The recommendations are part of the 10th report of KARC-II to help streamline fund usage in the southern state.
With the state budget due in March, the Siddaramaiah-led Congress government has been trying to identify and monetise various avenues to generate revenue to make up for shortfalls which have been estimated to be in the range of Rs 10,000-15,000 crore.
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‘Close or merge inactive schemes’
The committee has also recommended the closure or merger of approximately 1,000 inactive heads of accounts (HoA) or schemes that show zero or very small allocations with no real action or impact. The committee has also recommended a time-bound joint review of 280 HOAs/schemes with allocations below Rs 1 crore and formally merge or close schemes that are no longer operationally viable.
“To streamline financial management and ensure better transparency and efficiency, it is recommended that the finance department, in consultation with the office of the Accountant-General, undertake a comprehensive review and rationalise the HoA structure. HOAs with persistent zero allocation, negligible utilisation over multiple years, or functional duplication may be considered for closure, merger, or reclassification, retaining only those that are operationally essential,” the committee has said.
‘No new schemes’
The KARC-II was formed in January 2024 and the Deshpande-led commission has so far submitted three reports—on 22 May 2025, 6 October 2025, and 30 December 2025.
The report comes amid allegations that the Siddaramaiah-led government has been unable to optimally utilise budgeted funds.
The commission also said that streamlining schemes or HOAs will reduce the volume of transactional accounting entries, enhance clarity for pre-budget preparation, improve transparency and expenditure tracking, facilitate better monitoring of scheme implementation and minimise errors, duplication and administrative burden.
The commission has also recommended that schemes relating to self-employment, skill development, women SHGs (self-help groups), and livelihood diversification implemented independently at the state level may be converged with the National Rural Livelihoods Mission, ensuring unified beneficiary identification, financing, and outcome monitoring. It also said that schemes related to drinking water supply, sanitation, solid and liquid waste management and operations and management support for rural utilities may be fully aligned with Jal Jeevan Mission and Swachh Bharat Mission (Gramin), eliminating parallel implementation structures.
Meanwhile, Karnataka Chief Minister Siddaramaiah has written to the Modi government, expressing how the new law (VB-G RAM G) will add to the burden of states.
“The new law states that any expenditure that the state has to bear beyond its standard allocation must be borne by the states themselves as per the measures directed by the central government. This could make the states bear 100 percent responsibility for demand exceeding the limit set by the center. If the state is unable to bear the stipulated or excess expenditure, it will not be possible to implement the people’s entitlement to wage periods, which goes against the basic intent of having to provide grants where there is demand,” he said in his letter Tuesday.
ಮನರೇಗಾ ಯೋಜನೆಯ ಹೆಸರು ಮತ್ತು ಸ್ವರೂಪದ ಬದಲಾವಣೆಗೆ ಸಂಬಂಧಿಸಿದಂತೆ ಪ್ರಧಾನಿ @narendramodi ಅವರಿಗೆ ನಾನು ಬರೆದಿರುವ ಪತ್ರದ ಕನ್ನಡ ಸಾರಾಂಶ ಹೀಗಿದೆ;
ಹೊಸ ಕಾಯ್ದೆಯು ರಾಜ್ಯವು ತನ್ನ ಮಾನದಂಡ ಹಂಚಿಕೆಯನ್ನು ಮೀರಿ ಭರಿಸಬೇಕಾದ ಯಾವುದೇ ವೆಚ್ಚವನ್ನು ಕೇಂದ್ರ ಸರ್ಕಾರವು ನಿರ್ದೇಶಿಸಿದ ಕ್ರಮಗಳ ಪ್ರಕಾರ ರಾಜ್ಯಗಳೇ ಹೊರಬೇಕು ಎಂದು ಹೇಳುತ್ತದೆ.… pic.twitter.com/T4297CSOOS
— Siddaramaiah (@siddaramaiah) December 30, 2025
(Edited by Viny Mishra)
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