The State Government appears to be in a fix over the implementation of it flagship programmes like Rythu Bandhu, Dalit Bandhu and Aasara pensions in the coming months thanks to the uncertainty over the quantum of borrowings it will be allowed to raise.
Rythu Bandhu entails an annual outgo of around ₹16,000 crore and the government had made budgetary allocation of ₹17,700 crore for Dalit Bandhu, the scheme aimed at financial empowerment of dalits. This apart, the State Government has decided to reduce the age limit for availing of the Aasara social security pensions from the existing 63 to 57 years from this year itself and this would further burden the exchequer.
The government however landed in a piquant situation after the Union Finance Ministry raised questions relating to financial management and warned that the off-budget borrowings raised by the State in the name of state-owned corporations would be brought under the purview of FRBM Act. The Finance Ministry had not given its consent for raising open market borrowings for two months initially, but allowed the State to raise ₹11,000 crore in four instalments subsequently and this has helped the State meet the financial commitment under the first instalment of Rythu Bandhu.
