Karnataka Transport Corporations Face Financial Strain As Rs 5650 Crore Shakti Scheme Dues Remain

Karnataka’s four state road transport corporations are facing increasing financial pressure as the government’s pending reimbursement under the Shakti Scheme has reached Rs 5650.95 crore. The outstanding amount has become a concern as the number of free journeys under the scheme continues to rise.

The Shakti Scheme was introduced on June 11, 2023, to provide free bus travel for eligible women across Karnataka. Since its launch, the number of journeys under the programme has steadily increased, adding to the financial commitments of the state transport corporations.

Between the launch of the scheme and July 31, 2026, the four corporations spent a combined Rs 20,955.96 crore towards the scheme. Against this expenditure, the state government has released Rs 15,305.01 crore. This leaves Rs 5,650.95 crore still to be reimbursed.

The figures were provided by Transport Minister Bairathi Suresh in a written response during the recently concluded Legislative Council session. The Transport Department had reportedly requested the Finance Department to release the pending amount.

However, the Finance Department indicated that additional funds could not be released at present. It pointed out that the four transport corporations were already receiving financial assistance under different heads and that funds for the Shakti Scheme had also been provided in the state budget.

The growing number of free journeys is one of the major reasons behind the rising expenditure. During 2023 to 2024, the four corporations recorded 183.06 crore free journeys under the scheme. The figure increased to 244.65 crore during 2024 to 2025.

The trend continued in 2025 to 2026, when the number of free journeys reached 275.70 crore. During the first four months of the 2026 to 2027 financial year up to July, another 93.75 crore free journeys were recorded.

Taken together, the four corporations issued tickets for 797.16 crore free journeys between the launch of the scheme and July 2026. The sharp rise highlights the scale at which the programme is being used by passengers across the state.

The financial assistance provided by the government is not limited to the Shakti Scheme. Karnataka has also supported the transport corporations for several other requirements, including student bus passes, repayment of loans and interest, construction projects and the purchase of new buses.

Government assistance has also covered viability gap funding, motor vehicle tax exemptions and certain pending expenses related to salaries, diesel, provident fund contributions and leave encashment.

According to the minister’s response, the four transport corporations received a combined Rs 18,459.37 crore in financial assistance under different categories during the past three years.

Despite this wider support, the unpaid Shakti Scheme reimbursement remains a major issue for the transport sector. The corporations have already spent more than Rs 20,000 crore on providing free journeys, while a substantial portion of the amount is yet to be received from the government.

The situation becomes more significant as passenger usage of the scheme continues to expand. Higher numbers of free journeys mean greater expenditure for the transport corporations, while delays in reimbursement can put additional pressure on their day to day finances.

The latest figures therefore bring renewed attention to the financial model behind the Shakti Scheme. While the programme has become an important part of public transport in Karnataka, ensuring timely reimbursement will be crucial for the financial stability of the state’s transport corporations.