Daijiworld Media Network - Bengaluru
Bengaluru, Aug 28: Although the Shakti scheme, one of the most popular guarantee schemes of the ruling Congress government in Karnataka, has witnessed significant success, it has pushed the state’s transport corporations into severe financial distress.
The government is yet to release Rs 5,650.95 crore owed to the state transport corporations as pending subsidy towards free bus travel under the Shakti scheme.
The Finance Department’s statement that it cannot provide additional grants to clear the pending amount has added to the difficulties faced by the transport corporations.
Since the launch of the scheme on June 11, 2023, the four transport corporations had incurred a total expenditure of Rs 20,955.96 crore under the Shakti scheme up to July 31, 2026.
Against this, the government has released Rs 15,305.01 crore, leaving Rs 5,650.95 crore pending, Transport minister Bairathi Suresh stated in a written reply during the recently concluded Legislative Council session.
The Transport Department had requested the Finance Department to release the pending amount. However, the Finance Department stated that since funds had already been allocated for the Shakti scheme in the budget and the government had already provided grants to the four transport corporations, there was no provision to provide additional funds to clear the pending amount.
The minister’s reply stated that the grant under the Shakti scheme is determined based on the schedules of buses operated by the transport corporations.
In addition, the government has provided financial assistance to the transport corporations for several purposes, including student bus passes, repayment of loans and interest, construction of buildings, purchase of buses, Viability Gap Funding (VGF) and exemption from motor vehicle tax. Assistance has also been provided for pending payments related to salaries, diesel, provident fund and leave encashment.
The minister stated that the government has provided a total financial assistance of Rs 18,459.37 crore to the four transport corporations under various heads over the past three years.
Meanwhile, the number of passengers travelling free of cost under the Shakti scheme continues to increase. From June 2023 to July 2026, the four transport corporations issued tickets for a total of 797.16 crore free journeys.
A total of 183.06 crore journeys were recorded in 2023-24, which increased to 244.65 crore in 2024-25. In 2025-26, 275.70 crore free journeys were recorded. In the first four months of 2026-27, that is, up to July, another 93.75 crore free journeys were recorded.