The primary concern stems from the substantial financial burden that would be placed on the State’s budget.
Published Date – 08:13 PM, Tue – 19 September 23
The primary concern stems from the substantial financial burden that would be placed on the State’s budget.
Hyderabad: The Telangana Congress attempted to grab headlines on Sunday by unveiling its ‘Six Guarantees,’ a set of election promises that could pose significant economic challenges to the State. While these guarantees may sound promising on the surface, their implementation could be financially unviable.
The primary concern stems from the substantial financial burden that would be placed on the State’s budget. Implementing all six guarantees would require an estimated expenditure of nearly Rs. 2.90 lakh crore. This is a staggering figure, given that the State’s annual budget stands at Rs. 2.70 lakh crore.
To bridge this considerable deficit, the government would need to explore various options, including borrowing loans or increasing revenue sources such as taxes, stamp duties, and registration charges. Unfortunately, these measures would likely result in an increased financial burden on the general public.
The warning signs of such financial strain were evident earlier in Karnataka, where a similar set of guarantees was proposed. In June, the Karnataka Finance Department reportedly circulated a note, emphasizing the need to discontinue ongoing schemes to accommodate the new guarantee schemes.
The note called for a review of existing schemes in different departments to identify those that could be scaled down or discontinued.
The adverse effects of guarantee schemes have already been witnessed in Karnataka. For instance, the introduction of free travel for women on government buses led to a protest on September 11 by private transport operators in Bengaluru, resulting in significant losses.
These operators even demanded compensation of Rs. 1000 crore.
In Telangana, the state Congress, under the Rythu Bharosa programme, has promised annual payments of Rs. 15,000 to both land-owning farmers and tenant farmers. Additionally, agricultural labourers are promised Rs. 12,000, along with a bonus of Rs. 500 for paddy crops.
When one considers the large number of beneficiaries, these promises translate into substantial financial commitments. For example, providing Rs. 15,000 per acre to 1.52 crore land-owning farmers alone would amount to Rs. 22,800 crore.
Similarly, offering Rs. 15,000 per acre to 22 lakh tenant farmers would cost an additional Rs. 3,300 crore. Factoring in the expenses for agricultural labourers and the paddy crop bonus, the total expenditure would soar to nearly Rs. 69,500 crore, solely for the farming community.
TSREDCO Chairman Y Satish Reddy expressed his concerns regarding the feasibility of these promises, emphasizing the need for comprehensive planning and foresight to ensure they can be fulfilled without jeopardizing the State’s financial stability. He remarked, “They have no idea, no vision, and no planning. Just mere words and empty promises!”
Probable cost of implementing promises made by Congress in Telangana (in crore)
– Welfare pensions : Rs.39,110
– Housing (Indiramma Illu) : Rs.55,200
– SC Welfare : Rs.45,450
– ST Welfare : Rs.28,650
– Grant to Gram Panchayats: Rs.1,250
– Farmers and agricultural labour welfare: Rs.69,500
– Women welfare: Rs.38,500
– Employment: Rs.6,000
– Gruha Jyothi: Rs. 7,200
– Total : Rs.2,90,860
– Telangana State budget: Rs.2,70,000
