Telangana Finance department struggling hard to raise finances for crop loan waiver for farmers
Government has also to mobilise resources for implementation of Rythu Bharosa
The State Finance department is struggling hard to raise finances for the implementation of crop loan waiver of up to ā¹2 lakh to all eligible farmers.
The department is exploring different options in addition to raising amounts in the form of market borrowings through the auction of securities conducted by the Reserve Bank of India. The amounts that could be mobilised through the auction of securities are unlikely to meet the requirements as the Union government had put a ceiling on the borrowing limit of the State.
The State planned to raise ā¹16,000 crore market borrowings in the first quarter of the current financial year, according to the indicative calendar of borrowings released by the RBI. But, the State had raised ā¹13,000 crore till June 25. Senior Finance department officials who held discussions with the Centre said that the State could raise ā¹4,000 crore a month. āAround ā¹4,000 crore per month is the limit up to December,ā a Finance department official told The Hindu when asked whether the State could raise additional quantum of funds through market borrowings.
The official however remained tight-lipped when asked about the other options that are being looked into by the government. The tough financial situation the State is facing can be seen from the fact that the government had availed over ā¹3,000 crore in April through the financial accommodation instruments provided by the RBI to meet its immediate requirements. The State depended on a special drawing facility for 29 of the 30 days in April to avail ā¹938.68 crore, ways and means advances of ā¹1,089 crore for 23 days and overdraft of ā¹1,385 crore for eight days.
Given the tight situation of finances, the department is working overtime to fulfil the assurance given by Chief Minister A. Revanth Reddy that crop loan waiver amounting to ā¹31,000 crore would be implemented by August 15, coinciding with Independence Day. The Chief Minister is particular that the promise should be implemented in one go going by his assertion during a recent press conference. Coupled with the crop loan waiver is Rythu Bharosa under which the Congress assured financial assistance of ā¹7,500 an acre each for two crop seasons.
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