HYDERABAD: The Telangana government is considering scrapping schemes not useful to the state.
In its Fiscal Policy Strategy (FPS) statement for 2024-25, the state government disclosed that it reviewed all ongoing schemes and was retaining only those that were ‘useful’.
Asserting that the government had already terminated some of the schemes that were ‘not useful’, the FPS statement said: “Apart from terminating some of the schemes which have outlived their utility, schemes with same objectives have been merged.”
The government completed a thorough review of all ongoing schemes and rationalised them to meet the priorities of the state, it added.
The strategy is to redirect expenditure from less productive schemes towards investments which will result in lasting benefits to people. It is to prioritise the completion of ongoing tasks rather than taking up new ones.
As a part of rationalising schemes, the government is likely to terminate the flagship schemes like the sheep distribution scheme.
“One of the major sources of non-tax revenues to the State is royalty and seigniorage fees from mines and minerals. The possibilities of rationalising other non-tax revenues of the state are also being explored,” the strategy document said, adding that most of the borrowings of the government are being utilised for capital expenditure and this will result in income-generating assets.
Focus on taxation
The policy statement also said that efforts will be made to encourage digital transactions and thereby improve tax compliance