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.
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.
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.
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.
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.
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.
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.
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.
| Why in News | Key Points |
|---|---|
| Expansion of Rythu Bharosa Scheme | Telangana government expands the Rythu Bharosa scheme to provide ₹7,500 per acre for each crop season to 70 lakh farmers. |
| Scheme Replace | Replaces the Rythu Bandhu scheme, which provided ₹5,000 per acre. |
| Financial Assistance | ₹7,500 will be credited to farmers for each crop season, starting in January 2025. |
| Financial Management | Telangana to raise ₹30,000 crore through market borrowings to fund the scheme. |
| Borrowing Timeline | Borrowings raised in three tranches of ₹10,000 crore each, during the last quarter of the financial year 2024-25. |
| Approval Required | The scheme’s borrowings depend on the approval of the Government of India. |
| Telangana Key Information | State: Telangana, CM: Sri A Revanth Reddy, Capital: Hyderabad. |
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