The Shakti scheme, one of the five guarantee schemes implemented by the Chief Minister Siddaramaiah-led government on June 11, 2023, has completed a successful year, significantly empowering women, especially those from underprivileged sections. The scheme offers free travel for women and transgender individuals domiciled in Karnataka on non-premium buses, bringing about various indirect benefits as well. For many women, Shakti signifies different things: a means to save money, an opportunity for travel and exploration across Karnataka, and a symbol of freedom and independence. Alongside boosting women’s participation in the workforce, the scheme has also promoted public transportation statewide.
Several studies and feedback from beneficiaries reflect widespread acceptance of the programme. According to the state-run Fiscal Policy Institute (FPI), the first study to quantify the financial impact of the flagship guarantee scheme reveals that Shakti has contributed significantly to Karnataka’s GST collection. Since its launch, the scheme has resulted in increasing the state’s GST revenue by Rs 309.64 crore up to March 2024. The savings from travel expenses are redirected into consumption activities, generating revenue for the government, the FPI report explains.
Additionally, projections suggest that Shakti could generate Rs 371.57 crore in GST revenue in the fiscal year 2024-25. The scheme has also been found to increase savings among households. Another study by the JustJobs Network in collaboration with the Fiscal Policy Institute indicates that the average savings due to fare-free travel under the Shakti scheme amount to Rs 1,326 in Bengaluru, Rs 1,015 in Haveri, Rs 779 in Chamarajanagar, Rs 784 in Yadgir, and Rs 681 in Udupi. Notably, the Shakti scheme has contributed to a rise in women’s participation in employment. According to the FPI study, the Female Labour Force Participation Rate (LFPR) rose from 25.1% to 30.2% in October-December 2023 compared to
the same period in 2022. Similarly, the Worker Population Rate (WPR) increased from 23.7% to 28.8% during the same period.
The scheme, which facilitates safe and affordable transportation for women, has not only increased female workforce participation but also empowered them to contribute actively to the state’s economy, experts affirm. Since its rollout, the scheme has enabled thousands of women to visit various temples and tourist destinations across Karnataka without the burden of bus fare. Consequently, the savings are diverted towards spending on food and accommodation, bolstering local businesses. The scheme has also led to increased revenue for temples statewide. An official from a prominent temple mentioned that
daily footfall nearly tripled following the launch of the Shakti scheme, resulting in an 18% increase in revenue. In another temple, earnings have leaped to Rs 146 crore in 2023-24 compared to Rs 123 crore in the previous fiscal year.
