This is exactly it. On paper the government schemes are all well thought out and cover a large percentage of problems. The issue isn't in coming up with schemes, it's the implementation which is extremely lacking. So most of the money that is supposed to go into these schemes, end up being illegally pocketed by those in power. This is in addition to "paying a bribe" which most anecdotes talk about.

https://en.wikipedia.org/wiki/Corruption_in_India