Telangana intensifies efforts to raise resources for crop loan waiver and Rythu Bharosa
Revision of liquor prices in the offing after hike in land values is notified
The State government has intensified its efforts to mobilise financial resources needed for implementing crop loan waiver up to ₹2 lakh and other farmer-oriented schemes such as crediting the first instalment of Rythu Bharosa, for the current year.
The government is said to be contemplating to increase prices of different categories of liquor in the coming days. There is a plan to revise land values, which is expected to bring in more revenue in long term. The previous BRS government revised the prices of different liquor brands in March 2022 and there has been no revision since.
Though the prices were supposed to be revised in March this year, the issue was deferred in view of the Lok Sabha elections. Increase of prices by around 20% is likely to generate huge revenue in the immediate future, providing the much-needed relief to the government in terms of resources for fulfilling its commitments.
This apart, there are proposals to create a corporation through which loans could be obtained for implementing the crop loan waiver. There are, however, second thoughts on the issue, given the Centre’s insistence on treating off budget borrowings as State’s borrowings from 2021-22 itself. The government is learnt to be examining a proposal to seek the permission of the Centre to enhance its market borrowings through Reserve Bank of India, citing the special circumstances prevailing in the State.
The State could raise close to ₹60,000 crore through market borrowings for the fiscal, and a proposal seeking permission from the Union Finance Ministry to raise a significant quantum of this amount during July and August is said to be under active consideration.
In the event of the Centre declining the request, the State government would be left with no option but to mobilise the required financial resources internally by restricting expenditure to issues of urgent nature and stopping allocation to other sectors, at least for the time being.
Senior officials feel that the government could consider implementation of crop loan waiver in a staggered manner initially waiving loans up to ₹1 lakh, followed by loans up to ₹1.5 lakh and ₹2 lakh as this would avoid scope for pressure from farmers on the one hand and give time for the government to raise the required resources on the other.
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