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Parliamentary Panel Flags Low Utilisation of PM-AJAY Funds
A government scheme is meant to help Scheduled Caste communities earn better incomes.
It provides money for jobs, training and other livelihood activities.
A Parliamentary panel found that only 17% of the money set aside for one part of the scheme was spent in 2025-26.
The panel said money had also been under-used in the previous two years.
It was also concerned that officials did not have updated information about 1,785 approved projects.
The Department said more money was released each year, but States and Union Territories did not use enough of it.
The Department said the scheme depends on project requests from States and Union Territories.
It has proposed higher assistance, special support for the most marginalised households and better tracking systems.
The panel wants the Department to find and fix the reasons for the slow spending.
Only Rs 156.77 crore, or 17% of the Rs 920.20 crore Grants-in-Aid allocation, was spent in 2025-26.
The panel said Grants-in-Aid funds were also under-utilised in 2023-24 and 2024-25, with about 35% spent since 2023-24.
The Department sanctioned 1,785 projects under three-year perspective plans but lacked updated information on their status.
The Department said fund releases increased from Rs 165.17 crore in 2023-24 to Rs 358.62 crore in 2025-26.
Proposed reforms include raising livelihood assistance from Rs 50,000 to Rs 75,000 and introducing stronger monitoring and real-time data tracking.
- Who
- The Standing Committee on Social Justice and Empowerment, the Department, and States and Union Territories involved in PM-AJAY implementation.
- What
- The Parliamentary panel flagged low utilisation of Grants-in-Aid funds and inadequate monitoring of 1,785 sanctioned projects.
- Where
- Under the Pradhan Mantri Anusuchit Jaati Abhyuday Yojana across participating States and Union Territories.
- When
- The report assessed spending in 2025-26 and referenced utilisation since 2023-24.
- Why
- The Grants-in-Aid component is intended to reduce poverty among Scheduled Caste communities through employment, skills and income-generating activities.
Parliamentary Committee Concerns
Department Response
Spending performance
Parliamentary Committee Concerns
The Committee said only 17% of the 2025-26 allocation was spent and that recurring under-utilisation could undermine the scheme’s livelihood objectives.
Department Response
The Department said releases increased each year, while acknowledging that utilisation by States and Union Territories remained below expectations.
Project monitoring
Parliamentary Committee Concerns
The Committee said updated information on the 1,785 sanctioned projects was unavailable and called for a departmental monitoring mechanism.
Department Response
The Department said the draft continuation proposal includes outcome-based monitoring, regular reviews and an integrated management information system.
Implementation delays
Parliamentary Committee Concerns
The Committee urged the Department to identify bottlenecks, resolve them and ensure the Grants-in-Aid component gains momentum.
Department Response
The Department attributed implementation to the scheme’s demand-driven design, in which States and Union Territories submit proposals, and said it was pursuing them for timely proposals and action plans.
Key facts
- 2025-26 allocation
- Rs 920.20 crore for the Grants-in-Aid component
- 2025-26 expenditure
- Rs 156.77 crore, equal to about 17% of the allocation
- Cumulative utilisation
- About 35% of budgetary allocations was spent since 2023-24
- Projects sanctioned
- 1,785 projects under three-year perspective plans
- Fund releases
- Rs 165.17 crore in 2023-24, Rs 347.02 crore in 2024-25 and Rs 358.62 crore in 2025-26
- Proposed livelihood assistance
- Increase from Rs 50,000 to Rs 75,000
- Proposed monitoring
- Outcome indicators, regular reviews, real-time data tracking and API-based integration
Sources
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