HYDERABAD: In presenting the second full Budget of the Congress government, Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka has allocated more than 35 per cent funds for welfare and schemes currently being implemented as well as a few new ones.
While Vikramarka presented the Budget 2025-26 with an outlay of Rs 3.04 lakh crore, a lion’s share of Rs 1.04 lakh crore funds has been allocated for welfare and other schemes the Congress promised to the people of Telangana during the Assembly elections.
Highlighting the state’s current financial situation, Chief Minister A Revanth Reddy attributed the fiscal debt situation to the policies of the previous BRS regime. “The current administration is compelled to allocate thousands of crores every month towards payment of interest and principal amount on loans. Consequently, the Budget has been crafted realistically, taking into account the state revenue, borrowings, financial status and revenue receipts,” he said.
Revanth stated that the main objective of the government was to align the Budget with the present fiscal situation of the state, refraining from increasing expenditures beyond its revenue management capabilities.
Employees dues
The chief minister, however, assured the employees that pending payments would be cleared by March next year.
During a recent public meeting at Station Ghanpur, Revanth emphasised that the 2024-25 Budget had to be downsized due to financial mismanagement during the 10-year-rule of the BRS. “We sought to present a clear picture to the public, illustrating the challenges faced in implementing welfare schemes amidst fiscal constraints,” he said.
The state government has allocated substantial funds (Rs 56,084 crore) for major schemes like Rythu Bharosa, Cheyutha, Indiramma houses, Mahalakshmi (RTC), Gruha Jyothi (200 units of free power), bonus for superfine variety paddy, Rajiv Aarogyasri, LPG subsidy under Mahalakshmi and Indiramma Athmeeya Bharosa.
It also allocated Rs 48,245 crore for power subsidy, Rajiv Yuva Vikasam, scholarships and stipends, Kalayana Laxmi — Shadhi Mubarak, special development fund/constituency development funds, rice subsidy, Young India Integrated Schools, diet, incentives for industries promotion, insurance for farmers, interest free loans to Dwacra (Development of women and children in rural areas) women, solarisation of villages, green energy projects, tourism initiatives, Indira Giri Jala Vikasam, infrastructure for universities and road and building maintenance. Fulfilling its election promise of providing ration cards to all eligible families, the government also allocated Rs 5,734 crore to the Civil Supplies department.
Other significant allocations include Rs 40,232 crore for SC welfare, Rs 17,169 crore for ST welfare and Rs 11,405 crore for BC welfare. It may be recalled that the state government recently passed a 42% reservation Bill for BCs and an SC sub-classification Bill in the Assembly, reinforcing its commitment to social justice.
Priority sectors
The Budget also prioritises education, agriculture, women empowerment, unemployed youth, irrigation, SC/ST and BC welfare, and healthcare, including the implementation of the Congress government’s six guarantees. While the Congress claims to have present a “people’s Budget”, the opposition had accused the government of failing to fulfil its guarantees like Rs 2,500 financial assistance for women, Kalyana Lakshmi with 10 grams of gold, scooties for women students, enhanced Abhaya Hastam pensions and increased Rythu Bharosa benefits.
Notably, the Budget does not mention allocations for pending schemes, which is expected to become a key point of contention in the upcoming local body elections. The ruling Congress and chief minister are trying to assure the public that promises will be fulfilled in phases, citing financial constraints. However, the opposition continues to allege that the Congress misled voters with false promises.
The upcoming local body elections will be crucial for the ruling Congress, as it faces its first major electoral test since coming to power. Key issues, such as the incomplete loan waiver for farmers, delayed implementation of Rythu Bharosa, and pension schemes, could significantly impact the party’s standing in the polls.
