BENGALURU: The finance department has again cautioned the State Government over rising financial burden on various departments, particularly energy and transport.
It has urged the government to take a relook at the financial management of the departments, failing which the burden on the people will only increase in the coming days.
This has come at a time when the government has hiked bus fares and prices of milk, curd, ghee and butter.
Government sources said the financial burden on the energy department has increased due to the electricity subsidy provided to farmers using irrigation pumpsets (IP sets). The subsidy cost has increased from Rs 19,000 crore to Rs 36,000 crore.
“Due to severe drought, farmers depend on IP sets to pump water to irrigate their crops. Thus, the electricity subsidy increased by Rs 17,000 crore in just one season. If this situation continues, the burden on the exchequer will increase further,” the sources said.
The finance department has asked the energy department to hold meetings with farmers and agricultural institutions to find solutions to manage the drought situation. Suggestions such as reduction in power supply to IP sets from the existing 7 hours and increasing power tariff have been given to help manage the financial burden on electricity supply corporations.
According to data, there are around 35 lakh IP sets in the state. Around 56,000 IP sets have been accorded sanction for solarisation under the PM Kusum-B scheme. Around 1.37 lakh IP sets have been brought under the PM Kusum-C scheme.
The sources said, “A sum of Rs 1,110 crore has to be paid to Hindustan Petroleum Corporation Limited for diesel provided to state transport corporations to run buses. Of the amount, BMTC owes Rs 500 crore and KSRTC Rs 300 crore. Now diesel is being procured on a goodwill basis. A warning has also been issued to the government to clear the dues at the earliest, failing which fuel supplies will be affected.”
According to data, the finance department has spent Rs 52,000 crore on the five guarantee schemes. “Borrowing has become difficult as the state can’t cross the 3% fiscal deficit ceiling. Many decisions are politically taken, ignoring the rising financial burden,” the sources said.