Telangana hunts for funds

Hyderabad: Ahead of the next financial year, the Telangana State Government has launched a big hunt for funds to meet the financial requirements for the implementation of Dalit Bandhu scheme from 2022-2023 financial year.

As Chief Minister K Chandrasekhar Rao had announced that the government would earmark Rs 20,000 crore exclusively for Dalit Bandhu in the budget. In order to meet this major challenge, the Finance department has begun an exercise to find ways to mobilise funds. The State Government is already borrowing money from RBI at optimum level as per the FRBM (Fiscal Responsibility and Budget Management) Act.

Though one option is to mop more revenue by increasing VAT and other service taxes like Property, Stamps and Registration and Excise duty on liquor sales, the government is not prepared to utilise that option as the tax structure is already high.

At present, the government was spending Rs 5,500 crore on welfare schemes every month. Major chunk of funds was being spent on Aasara pensions, salaries of the government employees, Rythu Bandhu and the payment of interest on loans borrowed from the financial institutions to construct irrigation projects and mission Bhagiratha.

Monthly revenue generated from tax collection is Rs 10,000 crore which includes GST share from the Union Government. Officials said that "it would be a herculean task before the government to mobilise huge funds for Dalit Bandhu. The first option is to downsize the capital expenditure."

Sources said that special grants from the Union Government under the Dalit empowerment schemes and loans by State SC Development Cooperation are among the main options to meet financial requirements for the Dalit Bandhu. "The SC Corporation is permitted to seek borrowings. But that alone cannot mobilise the required funds," they said.

Chief Minister K Chandrasekhar Rao recently held one round of meetings with the officials of state Finance and SC Welfare and Development departments on this issue. This issue is going to take centre-stage during preparation of budget proposals.

The CM has asked the officials to come out with specific proposals to mobilise funds and the exercise is under progress, a senior official of SC Development department told the Hans India. "The CM will also hold a meeting with some financial institutions soon," the official said.