Major lapses in KALIA Yojana: 12.72 lakh ineligible beneficiaries receive Rs 782 crore aid

Bhubaneswar: The Comptroller and Auditor General (CAG) of India has revealed that the previous Biju Janata Dal (BJD) government in Odisha distributed Rs 782.26 crore in financial assistance to 12.72 lakh “ineligible” beneficiaries under the Krushak Assistance for Livelihood and Income Augmentation (KALIA) scheme.

The CAG’s report highlighted several irregularities in the implementation of the scheme, which was launched in December 2018 to provide financial support to farmers, landless agricultural households, and vulnerable agricultural families.

It also offered life insurance to cultivators and agricultural laborers, along with interest-free crop loans. In February 2019, the scheme was expanded to include the “KALIA scholarship,” aimed at providing merit-based scholarships to the children of beneficiaries pursuing professional courses in the state.

Despite its ambitious goals, the CAG report noted significant issues with the scheme’s execution. The state government approved the KALIA scheme to promote agricultural growth and reduce poverty, but it was implemented hastily, without a proper feasibility study. As a result, only two of its six components—support for cultivation and livelihood assistance for landless agricultural households—were operational from 2018 to 2021.

During this period, cash assistance was distributed to 65.64 lakh beneficiaries. However, 9.76 lakh of these beneficiaries were later identified as ineligible. Further audits discovered an additional 2.96 lakh ineligible recipients, bringing the total to 12.72 lakh. The CAG found that Rs 782.26 crore had been transferred to the bank accounts of these ineligible beneficiaries.

Moreover, the report flagged that Rs 107.64 crore had been paid to 1.28 lakh account holders whose names did not match the intended beneficiaries, indicating unauthorized payments.

The CAG also criticized the state government for failing to provide complete data on the KALIA scheme, despite repeated requests. This lack of transparency hindered the audit of Rs 2,060.29 crore, part of the total disbursement of Rs 9,333.01 crore, for the financial year 2021-22.

“Out of the total disbursement of Rs 9,333.01 crore, an amount of Rs 2,060.29 crore pertaining to the year 2021-22 could not be analyzed in the absence of proper data and information,” said the report.