Telangana’s Rythu Bharosa Scheme Expansion

The Telangana government’s Rythu Bharosa scheme has been expanded to provide financial assistance to all farmers cultivating crops, aiming to enhance agricultural support across the state.

Key Details of the Expansion

Financial Assistance: The scheme will credit ₹7,500 per acre for each crop season to approximately 70 lakh farmers in Telangana.

Implementation Timeline: The government plans to commence the scheme around the Sankranti festival, with Gram Sabhas scheduled from January 5 to 7 to collect applications from eligible farmers.

Financial Implications: The government intends to raise ₹30,000 crore in market borrowings during the last quarter of the financial year 2024-25 to fund the scheme.

Background and Evolution

The Rythu Bharosa scheme 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. The committee has finalized its report to ensure that the benefits reach only genuine farmers, thus preventing any potential leakages.

Financial Management

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.

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.

Summary of the news