Less than one-fifth of the Rs 920.20 crore budgeted for the Grants-in-Aid component of the Pradhan Mantri Anusuchit Jaati Abhyuday Yojana (PM-AJAY) scheme was spent in 2025-26, with expenditure standing at just Rs 156.77 crore, a Parliamentary panel has flagged, questioning the pace of implementation of projects aimed at improving livelihoods among Scheduled Caste communities.
Funds are released against approved proposals, and once projects are completed, States and UTs are required to upload project and beneficiary details on the PM-AJAY portal. The panel also asks the Department to maintain updated information on projects sanctioned under the three-year perspective plans, allowing it to track whether the projects are actually translating into employment, skill development and income-generating opportunities for SC communities. The Committee expressed concern that the Grants-in-Aid component had not gained the required momentum despite being intended to reduce poverty among SC communities through additional employment opportunities, skill development and other income-generating activities. The Committee also flagged a monitoring gap. Under the scheme, States and UTs submit project proposals based on their requirements. These proposals are then appraised and approved by the Project Appraisal-cum-Convergence Committee, or PACC. It has also proposed a dedicated livelihood component for the most marginalised SC households, with provisions for grants, training, handholding and capacity building. The draft proposal also envisages a stronger monitoring framework based on outcome indicators, regular reviews and an integrated management information system with real-time data tracking and API-based integration. The Committee’s concern, however, is that the recurring under-utilisation of funds risks undermining the core objective of the Grants-in-Aid component. It has asked the Department to identify the bottlenecks behind the low utilisation, resolve them and ensure that the scheme gathers momentum.
The panel said a monitoring mechanism should be developed within the Department so that updated information on sanctioned projects is available. The Standing Committee on Social Justice and Empowerment also found that the Department has sanctioned 1,785 projects under three-year perspective plans but does not have updated information on the status of these projects. The Committee said funds under the Grants-in-Aid component had remained under-utilised in 2023-24 and 2024-25 as well, and concluded that only about 35 per cent of the budgetary allocation had been spent since 2023-24. Only 17 per cent of the Rs 920.20-crore allocation was spent in 2025-26, says Parliamentary panel. It noted that the Department had sanctioned 1,785 projects under three-year perspective plans, but updated information on the status of the projects was not available with the Department. Releases rose from Rs 165.17 crore in 2023-24 to Rs 347.02 crore in 2024-25 and Rs 358.62 crore in 2025-26, according to the government. It said it was continuously pursuing States and UTs for timely submission of proposals and action plans to improve performance in 2026-27. Among the proposed changes, the government has suggested increasing financial assistance for livelihood activities from Rs 50,000 to Rs 75,000.
The Committee, in its 21st Report, said the situation had “not improved much” in 2025-26. Responding to the Committee, the Department said fund releases under the Grants-in-Aid component had increased each year. The Department said the increase in releases indicated improvement, but acknowledged that utilisation by States and Union Territories had remained below expectations. The Department said PM-AJAY’s Grants-in-Aid component is demand-driven. The Department said measures to address implementation and monitoring concerns have also been incorporated into the draft proposal for continuation of PM-AJAY. The Department said these measures are expected to improve implementation efficiency and lead to more sustainable income-generation outcomes.
