FGG calls for slew of austerity measures amid soaring State debt

Hyderabad: With 34 per cent of the State revenue being allocated to repay loans amounting to Rs 6.72 lakh crore, the Forum for Good Governance (FGG) has proposed several austerity measures for the government to consider.

The FGG said that it was disturbed by reading the white paper released by the Finance Department of Telangana, which said the previous government borrowed loans to the tune of Rs 6.72 lakh crore, which created tremendous pressure on the finances of the State. The white paper further mentions that 34 per cent of States revenue is going towards the payment of loans. The FGG suggested cutting down the administrative expenditure by 10 per cent without affecting the efficiency of working. The suggested austerity measures by the FGG include imposing a ban on the purchase of new vehicles, halting construction projects, including caste-based community halls (Bhavans), restricting foreign travel by politicians and bureaucrats, prohibiting government-hosted events and dinners, reevaluating the Rythu Bharosa (Rythu Bandhu) scheme by capping it to five acres of cultivated land, and addressing the underwhelming implementation of Dalita Bandu in the State.

“The selection of beneficiaries should be done by government agencies without the involvement of politicians; free power for agriculture pump sets should be limited to two bores. Farmers using more pump sets should be charged,” FGG secretary M Padmanabha Reddy said.

FGG additionally advocated for budget allocation towards irrigation projects nearing completion within the next one or two years, with major project allocations slated for the next financial year.

They proposed postponing the Kalyana Laxmi and Shaadi Mubarak schemes until the subsequent financial year. Moreover, FGG recommended a voluntary 10 per cent salary reduction for the Chief Minister, Deputy Chief Minister, Ministers, MLAs, MLCs, and MPs, while encouraging other employees to consider similar measures.