Farmers and agriculture labourers busy with farming works during the outset of monsoons, in the outskirts of Sangareddy in Sangareddy District on June 11, 2024.
| Photo Credit: MOHD ARIF
Telangana government is faced with the twin challenges of fulfilling the promise of crop loan waiver upto ₹2 lakh to farmers and crediting the amounts under Rythu Bharosa, the Farmers’ Investment Support Scheme, in the next couple of months.
While the government is mulling various options for raising resources to ensure crop loan waiver, implementation of the Rythu Bharosa will impose huge additional burden on the exchequer. The previous BRS government has earmarked over ₹15,000 crore to be paid to 68 lakh farmers at ₹10,000 an acre in two instalments.
The Congress in the run up to the assembly elections has assured that farmers would be given ₹15,000 an acre in two instalments of ₹7,500 each and this would entail additional expenditure burdening the State exchequer. Even if the government prunes the list of beneficiaries by removing fallow lands, lands not under cultivation and those allegedly converted into commercial purposes like real estate ventures but still enjoyed Rythu Bharosa benefits, the expenditure is likely to be high as over 70% of the beneficiaries are genuine farmers owning less than three acre land.
The government which is facing a tight financial situation with no marked improvement in revenue generation is scrambling for resources to credit the amounts into farmers accounts as the kharif season has already commenced. “No decision has been taken about enhancing the support from ₹5,000 to ₹7,500 an acre as yet. A decision will be taken soon. We will have to wait,” was how a senior Finance department official responded when asked about the Congress’ promise of enhancing the quantum of support.
At the same time, the government is learnt to be studying the guidelines of the Pradhan Mantri Kisan Samman Yojana wherein ₹6,000 a year is being credited into the accounts of poor farmers in three instalments. Little over 30 lakh farmers are covered under the PMKSY in the State and implementation of crop loan waiver for them is likely to ease the burden on the government to some extent.
The government has already indicated that steps would be taken to exempt Ministers, MLAs, MLCs, Mayors, ZP chairpersons and people holding other constitutional posts from the crop loan waiver benefit. Employees of the State and Central governments, retired employees drawing pension in excess of ₹10,000 a month, those paying Income Tax, doctors, engineers, chartered accountants, architects and other professionals too are likely to be exempted on the lines of PMKSY.
The State Cabinet which is likely to meet next week will discuss, among other things, the guidelines that should be adopted for crop loan waiver, cut off date from which the waiver would come into effect and also examine the scope for implementing loan waiver taking family as a unit. The Agriculture department is said to be preparing separate reports on the financial resources required in the event of loan waiver extended to all, amounts required if certain sections are exempted and the impact on the exchequer if the family is taken as an unit in extending the benefit.
Senior officials said the Cabinet would consider the reports forwarded by the Agriculture department besides ascertaining the scope for raising revenues before taking a policy decision on the issue.
