“CONSTITUTIONAL AND FISCAL VALIDITY OF THE KARNATAKA FIVE GUARANTEE SCHEMES”

AUTHOR – NISHANTH MALLENAHALLI RAJESH, STUDENT AT CHRIST (DEEMED TO BE UNIVERSITY) BANGALORE

BEST CITATION – NISHANTH MALLENAHALLI RAJESH, “CONSTITUTIONAL AND FISCAL VALIDITY OF THE KARNATAKA FIVE GUARANTEE SCHEMES”, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (2) OF 2026, PG. 455-464, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The Five Guarantee Schemes of Karnataka, when initiated under the Congress government in 2023, touted as one of the most ambitious welfare schemes implemented at the state government level in India, were a suite of schemes which sought to guarantee certain financial assistance, free/subsidized public schemes and benefits for millions of beneficiaries. These Schemes i.e., Gruha Lakshmi, Anna Bhagya, Gruha Jyothi, Shakti, and Yuva Nidhi received extensive interest from beneficiaries at a cost of operation exceeding of Rs 52,000 crore as of date1. The current research will investigate the economic and constitutional viability of these schemes on the basis of constitutional principles, directive principles of state policy, limits of borrowing, and fiscal responsibility. The approach followed in this study is doctrinal in terms of analyzing law, and analytical in examining the main objectives. The study will examine five guarantee schemes as reflective of the fundamental constitutional principles, directive principles of state policy overall schemes. The study accords fiscal sustainability and policy is in line with the Fiscal Responsibility and Budget Management framework. The examination asserts these welfare schemes find a degree of constitutional based upon Articles 14, 21, and the Directive Principles of State Policy, yet, pose major

issues with regards to, but not limited fiscal federalism, using up of state borrowing limits under Article 293 and the Fiscal Responsibility and Budget Management frameworks for the States of Karnataka. The research concludes although these welfare schemes appear to be constitutionally acceptable through both a policy perspective of social justice frameworks, their potential use will warrant serious fiscal considerations and structural reform to fiscal

frameworks to be sustainable in without jeopardizing or straining the economic integrity of Karnataka, or falling short its constitutional borrowing limits.

Keywords : Constitutional Validity, Financial Responsibility, Welfare Schemes, Article 293, FRBM Act, Karnataka Guarantees, State Finance