Parliamentary Panel Flags Low Fund Use in SC Livelihood Scheme

A parliamentary panel has expressed concern over the slow pace of implementation of the Pradhan Mantri Anusuchit Jaati Abhyuday Yojana (PM-AJAY), noting that only a fraction of its allocated budget for grants-in-aid was spent in the current financial year.

The Standing Committee on Social Justice and Empowerment found that just Rs 156.77 crore of the Rs 920.20 crore earmarked for the scheme's Grants-in-Aid component was utilised in 2025-26, amounting to roughly 17 per cent of the allocation.

The committee's 21st Report highlighted that fund utilisation under this component has remained below 35 per cent since 2023-24, indicating a persistent trend of under-spending. The panel warned that this recurring shortfall risks undermining the scheme's core objective of reducing poverty among Scheduled Caste communities through employment generation, skill development, and income-producing activities.

A key concern raised by the committee is the lack of updated information on sanctioned projects. While the Department has approved 1,785 projects under three-year perspective plans, it does not have current data on their status. The panel has urged the Department to establish a robust monitoring mechanism to track these projects and assess whether they are translating into tangible benefits for the target communities.

In its response, the Department noted that fund releases have increased annually, rising from Rs 165.17 crore in 2023-24 to Rs 347.02 crore in 2024-25 and Rs 358.62 crore in 2025-26. It attributed the increase to improved performance but acknowledged that utilisation by States and Union Territories has remained below expectations. The Department stated it is pursuing states for timely submission of proposals and action plans.

Explaining the scheme's structure, the Department said the Grants-in-Aid component is demand-driven. States and UTs submit project proposals, which are appraised by the Project Appraisal-cum-Convergence Committee (PACC) before funds are released. Upon completion, project and beneficiary details are to be uploaded on the PM-AJAY portal.

The government has proposed several changes for the scheme's continuation, including raising financial assistance for livelihood activities from Rs 50,000 to Rs 75,000. It also plans a dedicated livelihood component for the most marginalised SC households, featuring grants, training, and capacity building. A stronger monitoring framework with outcome indicators and real-time data tracking is also envisaged.

The committee has asked the Department to identify and resolve the bottlenecks causing low utilisation and to maintain updated records of all sanctioned projects to ensure the scheme gains the necessary momentum.