The State Government is likely to face an uphill task in mobilising resources to meet its immediate financial requirements for the current fiscal thanks to the steep cut imposed by the Union Finance Ministry on the quantum of open market borrowings.
The State Government has lined up a series of programmes including Dalit Bandhu, one-of-its-kind scheme for financial empowerment of dalits, with a one time grant of ₹10 lakh to each family. The government had earmarked ₹17,700 crore in the budget for the ambitious scheme and coupled with this is the Rythu Bandhu, farmers investment support scheme, entailing an expenditure close to ₹15,000 crore for the current fiscal.
Expenditure on salaries and wages to different cadres of employees and pensioners for the current year is pegged in excess of ₹40,000 crore while debt servicing would cost another ₹18,911 crore. Given the magnitude of the funds required, the State Government is likely to face difficulties in raising resources.
