He also made it clear that the funds would not be allowed to be diverted and would have to be spent only on SCs/STs welfare.
The announcement, welcomed by the Congress's Dalit MPs, also drew appreciation from social workers, but the Bahujan Samaj Party, which claims to represent the weaker sections, was unimpressed.
Party chief Mayawati said despite large allocations for the SC/STs in every budget, the money had done little to improve the lives of the people.
"Had this amount been spent on lower castes, their plight would have improved," she said.
But, Dalit writer and thinker Prof Chandra Bhan Prasad said it was a good move. "Even if the announcement has come when the elections are about a year away, I feel that it is a part of the political process. But what is important is that once an allocation is announced, it has to be provided for since it is a promise made in Parliament," he said.