Funds ready for flagship schemes

Hyderabad: With Assembly elections round the corner in Telangana, the state government is busy finalising allocations to important schemes in the third quarter of this financial year to ensure that the state does not face any fund crisis in the implementation of the flagship welfare programmes in the next three months.  

The Finance department has already deposited Rs 5000 crore for the Rythu Bandhu scheme in banks as the government has already announced the distribution of second installment of Rs 4,000 per acre incentive to the farmers in November second week.  

The Finance department is also making funds available for all welfare schemes mainly the social security pension which requires at least Rs 1,500 crore per month. Some development programmes like completion of the construction of hospitals in the districts, up-gradation of the medical and health institutions and the completion of the newly sanctioned educational buildings are being given top priority. 

Officials said that the disbursement of interest-free loans up to Rs 50,000 to BC, SC, ST and minority communities under self-employment schemes were also accorded utmost priority. Ministers and District Collectors were asked to dispose of all the pending applications under employment schemes. For this purpose, Rs 1,000 crore has already been sanctioned and released to the respective departments.  

The third quarter is also crucial for the government as it has to pay interests on the loans taken under various developmental schemes, mainly construction of irrigation projects and housing for which banks were lending money, officials said, and added that the Finance department is keen on utilising funds judiciously in the next three months.

As the Election Commission already indicated that the elections will be held before November end, the government has cut unnecessary expenditure by not conducting official programmes in Assembly segments, districts and at state-level. 

Officials said that the total revenues generated in the state are Rs 6,000 crore per month (tax and non-tax revenues including GST and Central funds). In all, the government requires nearly Rs 20,000 crore to pay the salaries, interests on loans and continue all the welfare schemes in the next three months.  

The Finance department, if required, will approach the RBI and sell the bonds to meet any additional financial requirement. In view of the finances becoming tight, clearance of the long-pending bills in Roads and Buildings, Panchayat Raj, Municipal Administration departments will be put on hold until the elections are over, a senior official said.