Bihar’s Unemployment Allowance Scheme Faces Fraudulent Claims; Rs 45.63 Lakh Recovered

Patna: The Bihar government’s unemployment allowance scheme, Mukhyamantri Nishchay Swayam Sahayata Bhatta Yojana, has come under scrutiny following revelations of fraudulent claims. An internal report by the Planning and Development Department highlights that many ineligible youths have availed of the scheme, depriving deserving beneficiaries. In response, the government has initiated a recovery process to reclaim the misused funds.

The scheme, introduced in 2016 to provide financial aid to unemployed youths aged 20-25 years, has seen widespread misuse. Of the 7,61,236 youths who have benefited from the scheme, physical verification of 48,832 applicants revealed that 7,693 individuals used fake certificates to claim funds. This accounts for 15.75 percent of verified cases.

The government has begun tracking these fraudulent beneficiaries, recovering ₹45.63 lakh so far. The report emphasized the need for stricter checks to ensure the scheme reaches genuine applicants.

The Bihar government targets disbursing unemployment allowances to 2 lakh youths annually, yet the figures show declining interest. In the 2023-24 financial year, only 75,397 youths applied for the allowance, out of which 1,474 applications were rejected, and 1,976 selected youths have yet to receive payments. A total of ₹108 crore was distributed among 69,716 beneficiaries during this period.

For 2024-25, 49,646 applications have been received, and with the previous backlog, the government has approved unemployment benefits for 50,485 youths so far.

Since its launch in October 2016, the scheme has benefited 7.61 lakh unemployed youths, averaging 95,000 beneficiaries annually. Promised during the 2015 assembly elections, the initiative aims to provide ₹1,000 monthly to eligible unemployed youths, enabling them to pursue skill development in areas like computer training, language courses, and telecommunication.

The scheme prioritizes youths from financially weaker backgrounds, ensuring they can continue their education and skill-building without financial hindrances.

To qualify for the scheme, applicants must:

Be unemployed and aged 20-25 years

Have completed intermediate education and enrolled in skill-enhancing courses such as language or computer training

Not be engaged in any form of employment during the allowance period

The scheme excludes graduates, engineering students, and those with diplomas like polytechnics. Beneficiaries who secure employment during the allowance period are disqualified from further payments.

The unemployment allowance scheme, described as a “dream project” of Chief Minister Nitish Kumar, aims to empower youths and improve employability. However, the misuse of funds has raised concerns about its implementation. Officials are now intensifying efforts to curb fraudulent claims and ensure the scheme’s sustainability.

With stricter verification processes and recovery measures in place, the government seeks to restore public trust in the initiative while continuing its mission to support unemployed youth.