Government Schemes in India

Government Schemes in India

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In this blog post, we’ll talk about the government schemes in India.

What is a Scheme?

A scheme is a plan, system or design to achieve a particular goal. The word may also refer to two or more people engaging in dishonest activity together especially with the aim of making a profit. Scheme has come up most often in relation to investment frauds where people were persuaded into investing money based on fraudulent representations and promises of high return.

In this way, schemes are different from scams as they are not necessarily unlawful. In order to make money schemes require working and some sort of investment. However, schemes are often just seen as ways to exploit others. A scheme with hidden agendas is unethical and can sometimes be illegal.

Types of Schemes:

There many types of schemes that are used in various ways by a variety of people, companies and businesses. Some of the most common types of schemes are discussed below.

The most popular way in which people use fraudulent schemes is as a tax evasion device. The fraudsters fabricate a source of income or income statement, sell their shares and claim the proper tax deduction. In a typical Ponzi scheme, the fraudster creates the false impression that he is investing in something legitimate and then sells off his shares before there has been any real investment. The investor’s money is invested back into the scammer’s account, with which he pays himself regular monthly payments from new investors. In a common online fixed-rate-refund or TFR scam, a person generates income from rent and then claims tax deductions for most of it. The fraudster then sells the apartment and quickly moves on to the next victim. Other schemes involve the use of false identity documentation and fraudulent estates. The fraudster creates a false identity using stolen birth certificate data, falsified passport or other identity documents, fake driver’s license and other phony documentation. The fraudster then creates a complete life story for himself in this forged identity that includes a new home address where he has moved.

Government Schemes in India:

Government schemes are a major source of income for Indian politicians and bureaucrats. Whether they are honest or dishonest, the government schemes have been misused by politicians and bureaucrats to make money and give themselves perks. The scams are many and the most common ones involve the purchase of land by government officials, sale of government properties at below market rates, unnecessary spending on infrastructure projects, free land grabbing along with income tax exemptions to people who take bribes and other fiscal reliefs given to the unqualified in exchange for kickbacks.

Government schemes are also a major source of personal wealth for politicians and bureaucrats. Many of the top politicians in India have come to power through either rigging or election victories and then government schemes.

The scams involve the misuse of funds intended for development programs and spending over budget, misuse of funds meant for public welfare and favored projects, misappropriation of funds meant for railway projects, officers taking bribes that buy them luxurious houses, misuse of funds meant for public interest and such things.

Indians are also mad about government schemes. Every time there is a new government scheme, many Indians’ rush to get into the fray and make money by availing of these programs. Some of the biggest scams have been associated with government schemes. 

The popular scams and frauds include business-class reservation on airlines, people getting loans merely by signing on the dotted line and political parties using channelizing illegal funds in their accounts as donations and grants from business houses. The list is endless and can go on endlessly.


In this post we looked at the government schemes in India. There are many scams and frauds that use various government schemes to take money out of people’s pockets through various illegal means. The good thing about these schemes is that they help people without giving them much of a clue about how the money is being spent. The bad thing is that they give the people involved in a fraud a false sense of security and allow them to take money from other innocent people.

The government schemes are mostly fraudulent but there are many honest people too who have used these schemes for the common good as seen in New Sarkari Yojana 2023. In any case, the crooks should not be allowed to use them unfairly on others.

About Me:  I am a blogger and an Electrical Engineer. I work in corporate sector as a Senior System Analyst and Internet Consultant.