24.10% of the budget is required to be earmarked for the welfare of SCs & STs υªin all City Corporations, City Municipal Councils/Town Municipal Councils/Town Panchayaths of Karnataka. In this regard, they are required to reserve income from all sources viz., the taxes levied and collected by them under the provision of Karnataka Municipalities Act, 1964, grants released by Government towards the compensation for the loss of income due to abolition of octroi, development grants and other grants. Loan and purposive grants given to ULBs are however excluded.Previously , 18% of the budget was being earmarked for the welfare of SC & STs.Taking cognizance of the increase in population of SC & STs, Government has proportionally increased the percentage of allocation from 18% to 22.75% Vide.  G.O Number: UDD 186 GEL 2008, Dated 4-3-09 and 22.75% changed to 24.10% vide  G.O Number: UDD 23 PNG 2014, Dated 18-09-2014.

The 24.10% budget is required to be utilised exclusively for the benefit of SCs & STs individually or collectively in the proportion of 17.15% & 6.95% respectively on the schemes beneficial to them. At the time of devising action plan, all the Urban Local Bodies are required to ensure that the following proportion be maintained:

a) 40% amount to be reserved for individual benefit schemes.
b) 60% amount to be reserved for community benefit schemes. The individual benefit schemes are mentioned as under:

1) Housing:

1.1) Pucca House Construction Scheme.
1.2) To bear the beneficiary contribution in Government sponsored Economic Housing Construction Schemes.
1.3) To provide housing sites to Poura karmikas.

2) Employment:

2.1) Subsidy for small scale industrialists belonging to SC/ST.
2.2) To help in purchase of equipments to persons who have already completed Skill Development Training.
2.3) To bear the beneficiary contribution in Government sponsored Economic Employement Schemes.
2.4) Subsidy to acquire Industrial sites & sheds in Government Industrial layout.

3) Health

3.1) To provide subsidy for attachment of artificial limbs/arms etc.
3.2) To provide financial support for major surgical procedures.

4) Education

4.1) Financial support for medium & long term Skill Development Training Programmes. .
4.2) Special financial support for students undertaking post graduation and higher studies.
4.3) Help for students who participate in State/National level games ,cultural & debate activities.

5) Basic necessities

5.1) Subsidy for building individual toilets.
5.2) To provide for expenses incurred on of providing connection U.G.D.
5.3) To provide for expenses incurred on of providing connection to drinking water.