In 2018-19 Bihar used SC/ST scholarship fund on construction of roads and embankments

Public Lokpal
November 01, 2021

In 2018-19 Bihar used SC/ST scholarship fund on construction of roads and embankments


Patna : Roads. Embankments. Medical colleges. Government buildings. These are among the projects to which the Bihar government, in 2018-19, diverted more than Rs 8,800 crore by dipping into a fund meant exclusively for an SC/ST scholarship — which it has cited a shortage of money for and denied to many eligible students for around six years.

This diversion of the Scheduled Caste Sub Plan (SCSP) fund was flagged by the Comptroller and Auditor General (CAG) in its 2018-19 report on Bihar’s finances. It took place despite provisions of the Planning Commission (now the NITI Aayog) stating that the SCSP fund is meant for extending the centrally-sponsored Post-Matric Scholarship (PMS) to SC/ST students with an annual family income of less than Rs 2.5 lakh.

It should be noted, that ‘Bihar already denied SC/ST scholarship for 3 years, says technical issues with portal’. In fact, most Bihar SC/ST students had been denied this scholarship for six years — in 2016, the Bihar government’s SC/ST welfare department imposed a fee cap under it, increasing the financial burden on students.

The scholarship — 60 per cent of which is funded by the Union Social Justice and Empowerment Ministry — is meant for educational and professional courses above Class 10 till Masters level.

According to the CAG report on the use of the scholarship funds:

– The state diverted Rs 2,076.99 crore to the state electricity department and also loaned it Rs 460.84 crore.

– It diverted Rs 3,081.34 crore for major road projects.

– Rs 1,202.23 crore went into constructing embankment and flood control projects.

– Rs 1,222.94 crore was used for for medical colleges

– It utilised Rs 776.06 crore for constructing an agricultural department office and other buildings.

The flagship post-matric scholarship benefits around 60 lakh SC/ ST students annually in the country. Bihar alone has about five lakh eligible students every year. The scheme has been doing well in other states, including in neighbouring Uttar Pradesh. Under the scheme, a state is entitled to avail any amount from the Centre above its annual committed liability of about Rs 115 crore. Bihar barely spent around Rs 60 crore annually between 2017-18 and 2019-20. Since it spent much less than its committed state liability, Bihar did not qualify for any Central share in this period.