HYDERABAD: The economic slowdown followed by the COVID-induced lockdown has dented the Telangana government's revenues, placing it in an awkward position when it comes to implementing some of its populist schemes.
The government had announced that it would pay Aasara pension to persons above 57 years of age beginning this financial year. Presenting his maiden Budget in March, Finance Minister T Harish Rao had said: "I take immense pride in announcing that old age pension will be given to all eligible persons who are above 57 years from 2020-21."
But the implementation is being delayed due to poor revenues, according to sources. In fact, it is doubtful if the government will be able to extend the pension to more beneficiaries in the next three months.
The government had estimated that if people, who are above 57 years of age, should get Aasara pension, around 6.62 lakh new beneficiaries would be added. At present, it is paying Rs 2,016 per month towards the pension and if the new beneficiaries are added, the exchequer will be burdened with around Rs 1,600 crore per year.
Dole for jobless youth
Another assurance given by the TRS during the elections was the monthly payment of Rs 3,016 dole to unemployed youth, for which the government needs around Rs 1,800 crore per year. But this scheme, too, has been put on the backburner with the government not even framing guidelines for it.
Hike unlikely for government staff
Additionally, as the State Budget has been revised downward this year, the government may not take a decision on the first Pay Revision Commission (PRC) for its employees.
Though the government employees hope to get a 30 per cent pay hike, the State's financial position may not allow it to give them even 10 per cent. "The pay hike, if any, will be below 12 per cent," sources have said.
There is no clarity on when the Telangana government will be able to implement its assurances, as the State’s financial position has not improved much. There might be an announcement on these measures when the State presents its 2021-22 Budget in February or March, sources have said.
Doubtful if governmentt can give Aasara pension
The Telangana government had announced that it would pay Aasara pension to persons above 57 years of age beginning this fiscal. But now, it is doubtful if the government will be able to extend the pension to more beneficiaries in the next three months