Shakti scheme adds to Karnataka GST as more women join work force
The Shakti scheme of free bus travel for women is contributing to Karnataka’s GST collection while also increasing female participation in the labour force, according to a study by the state-run Fiscal Policy Institute (FPI).
From June last year, when the Shakti scheme was launched, to March this year, Karnataka’s GST collection 'presumably' increased by Rs 309.64 crore as the money women are saving is being used for consumption activities, translating into revenue for the government, the study said.
This is the first study that quantifies the financial impact of Shakti, the Siddaramaiah-led Congress government’s flagship guarantee scheme.
“The amount saved on the travel results in increased income for a traveler and it is presumed that they will spend the entire amount on consumption of other necessary items,” FPI research fellow Anusha Sangondimath states in her report. “Such extra spending would modify the tax collections by the government.”
