Congress faces financial hurdle in Telangana for promised schemes

Revanth and key members of his Cabinet held a meeting with former RBI governor Raghuram Rajan to explore ways to raise funds
Telangana reels under a financial crunch, a major challenge lies before the Congress government.
Telangana reels under a financial crunch, a major challenge lies before the Congress government.(File Photo | PTI)

HYDERABAD: As Telangana reels under a financial crunch, a major challenge lies before the Congress government in the form of mobilising resources for implementation of the six guarantees that it promised to the people before the Assembly elections.

According to rough estimates, more than Rs 1 lakh crore is required to implement the populist schemes promised under these six guarantees as well as other assurances like farm loan waiver.

Sources in the government informed TNIE that Chief Minister A Revanth Reddy and some key members of his Cabinet recently held a crucial meeting with former RBI governor Raghuram Rajan for the second time to explore ways and means to mobilise Rs 1 lakh crore.

The meeting was reportedly aimed at striking a fine balance between developmental works and the implementation of welfare schemes. Sources said that one of the suggestions made during the meeting was to halt developmental activities such as irrigation projects.

Ahead of the Assembly elections, the Congress promised six guarantees such as Rs 2,500 assistance and free travel in RTC buses for women, LPG cylinder for Rs 500, Rs 15,000 crop input subsidy, Rs 12,000 to agriculture labourers, Rs 500 bonus per quintal of paddy, 200 units of free electricity to households, Rs 5 lakh for construction of Indiramma Indlu, Vidya Bharosa Card worth Rs 5 lakh to students, enhancement of pension to Rs 4,000 and Rs 10 lakh health insurance.

The Congress vowed to fulfil these promises within 100 days of coming to power. However, just a few of these schemes are currently being implemented.

In the run-up to Lok Sabha elections, the Congress promised to implement a crop loan waiver of up to Rs 2 lakh by August 15. It is estimated that around Rs 35,000 crore is required to implement this scheme alone. It is learnt that the state has currently exceeded the limit defined under the Fiscal Responsibility and Budget Management Act, 2003.

Meanwhile, several state-run corporations too are facing financial losses. It remains to be seen how the government mobilises funds to overcome these challenges.

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