NEWS – The Second Karnataka Administrative Reforms Commission (ARC) has recommended consolidation / closure of nearly 1,000 outdated & irrelevant schemes to rationalise State revenue expenditure.

KEY RECOMMENDATIONS

 Consolidation / Closure of Schemes

• Out of 2,874 Heads of Accounts (HOAs)
• About 1,000 HOAs found irrelevant / ineffective
• Many schemes:
  • Receive negligible allocation
  • Overlap with Central schemes
  • Have already fulfilled objectives
  • Or receive no response / impact

Restriction on New Posts

• No creation of new government posts unless absolutely necessary
• Introduce Annual Recruitment Plan
• Focus on better personnel deployment

Addressing Revenue Pressure

• Karnataka revenue deficit increasing over last two financial years
• Due to 5 major guarantee schemes
• Need for fiscal discipline highlighted

Pooling of Skilled Human Resources

• ARC found shocking mismatch:
  • 240 B.E. graduates
  • 180 M.Tech
  • ~2,000 MCA / BCA / BBA graduates
• Working as cooks, assistants, clerks etc.
• Recommendation:
  • Pool & deploy engineers & tech graduates in e-governance & technical roles

FINANCIAL CONCERNS

• Some schemes receive less than ₹1 crore
• High administrative expense (>35%)
• Steep decline in allocation:
  • From ₹1,336 crore (2023–24)
  • To ₹105 crore (2025–26)
• Conclusion: Such schemes ineffective / irrelevant now

VACANCIES & HR ISSUES

• 2.94 lakh posts vacant across 42 departments
• Approved: 8.16 lakh posts
• Filled: 5.18 lakh posts
• Outsourced staff: ~70,000
• ARC suggests:
  • Freeze outsourcing
  • Abolish obsolete posts
  • Fill frontline vacancies on priority

 IMPLEMENTATION SUGGESTIONS

• Periodic audit of schemes
• “Mission Mode” execution for important projects
• Reduce dependence on Central schemes to avoid scattered State priorities