Karnataka is well known in the country as a model state from the points of view of social welfare and economic development. Karnataka has also witnessed a strong Dalit movement, which fought for the human rights and distributive justice. The state government has established the Directorate of Social Welfare to plan and execute special programmes for the social and economic progress of Scheduled Castes and Scheduled Tribes. Social Welfare Department is the Nodal Department to monitor the overall Development of Scheduled Caste people in Karnataka. The higher echelons of the power structure that constitute a microscopic minority among the Scheduled Castes receive the reservation benefits. The percentage of STs Living in permanent houses with better civic amenities is lower when compared to SCs and other population. Adequate funds are not spent on various socially beneficial activities by the Department of Social Welfare. The contribution of Central Government is inadequate for the social empowerment of SC/ST population. It is necessary to earmark adequate funds and implement various development programmes based on social commitment and responsibility. The elected representatives and officials responsible for non-utilization of funds and non-performance should be brought to the book in order to prevent any misuse and misappropriation of funds meant for the development of SC/ST communities in the state of Karnataka.