The Telangana Cabinet sub-committee has approved the extension of the Rythu Bharosa farmers’ investment subsidy scheme. This decision aims to benefit all farmers with cultivated lands. The scheme, a promise made by the Congress party, will credit ₹7,500 per acre for each crop season to approximately 70 lakh farmers in the state. The government is preparing to raise the necessary funds, with implementation expected to start around the Sankranti festival.
Background of Rythu Bharosa
The Rythu Bharosa scheme is designed to support farmers financially. It replaces the previous Rythu Bandhu scheme, which provided ₹5,000 per acre. The Congress party claims that the previous scheme suffered from misuse, with ineligible beneficiaries receiving excessive funds. This new scheme aims to rectify those issues by focusing only on lands that are actively cultivated.
Implementation Strategy
The Cabinet sub-committee, led by Deputy Chief Minister Mallu Bhatti Vikramarka, has outlined the implementation process. Gram sabhas will be held from January 5 to 7 to collect applications from eligible farmers. The committee has finalised its report to ensure that the benefits reach only genuine farmers, thus preventing any potential leakages.
Financial Implications
The government plans to credit an additional ₹2,500 per acre under the Rythu Bharosa scheme. This increase means that despite a potential reduction in beneficiaries, the overall expenditure will remain . The scheme is expected to maintain a financial outlay similar to the previous Rythu Bandhu scheme.
Market Borrowings Overview
In conjunction with the Rythu Bharosa scheme, the Telangana government intends to raise ₹30,000 crore in market borrowings during the last quarter of the financial year 2024-25. This amount will be raised in three monthly tranches of ₹10,000 crore each. The Reserve Bank of India will conduct auctions of securities every Tuesday during this period.
Government Borrowing Restrictions
The Union Finance Ministry has imposed limits on state borrowing due to financial management concerns. Although the Telangana government projected borrowings exceeding ₹61,000 crore, this was later reduced to ₹49,255 crore. The state has already borrowed ₹37,850 crore by the end of November, with additional borrowings in December.
Approval Process for Borrowings
The actual amount of borrowings will depend on several factors, including approval from the Government of India and market conditions. The Union Finance Ministry’s consent is crucial for the state to exceed its borrowing ceiling. As of now, the finance department has not disclosed whether such approval has been granted.
- Rythu Bharosa translates to “Farmer’s Trust” in English.
- Gram sabhas are local village councils in India.
- Sankranti is a major harvest festival celebrated in January.
- The ₹7,500 per acre subsidy aims to support farmers during crop seasons.
- The Reserve Bank of India regulates state borrowing through security auctions.
Future Prospects
The Telangana government is keen to ensure that the Rythu Bharosa scheme is beneficial and sustainable. Senior officials have indicated that the scheme will undergo regular assessments to maintain its integrity and effectiveness.
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