Vote-on-Account Budget:Telangana proposes to waive agricultural loans of up to Rs 1 lakh

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Published: February 23, 2019 12:33 AM

An amount of Rs 6,000 crore is proposed towards the waiver, CM K Chandrasekhar Rao said while presenting a vote-on-account Budget

Telangana proposes to waive agricultural loans of up to Rs 1 lakhTelangana proposes to waive agricultural loans of up to Rs 1 lakh

The Telangana government has proposed to waive all agriculture term loans up to Rs 1 lakh outstanding as on December 11, 2018. Towards the loan waiver, an amount of Rs 6,000 crore is proposed, chief minister K Chandrasekhar Rao said while presenting the vote-on-account Budget for 2019-20 in the legislative assembly. He presented a Budget of Rs 1,82,017 crore for the financial year 2019-20.

Further, as part of the Telangana Rashtra Samithi (TRS) party poll promise, the state government has also decided to increase the investment support scheme, or Rythu Bandhu, to `5,000 per acre. Currently, the government gives investment support of `4,000 per acre per crop season amounting to `8,000 per annum, which has now been increased to `5,000 per acre per crop. The total support for the year will be `10,000 per acre. The amount proposed in 2019-20 budget towards Rythu Bandhu is `12,000 crore, the chief minister said.

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Presenting the vote-on-account Budget, Rao said that of the estimated total expenditure in 2019-20 of `1,82,017 crore, revenue expenditure is `1,31,629 crore and capital expenditure is `32,815 crore. In 2019-20 the estimated revenue surplus is `6,564 crore and fiscal deficit is `27,749 crore. The fiscal deficit is 2.81% of gross state domestic product (GSDP). The growth of GSDP at current prices has improved from 14.2% in 2016-17 to 14.3% in 2017-18.

The growth is estimated to grow at 15% in 2018-19 as against country’s growth rate of 12.3%. The GSDP during 2018-19 is estimated at `8,66,875 crore. The primary sector of the GSDP at current prices is expected to register a growth rate of 10.9% in 2018-19. This growth can be attributed mainly due to improvement in power situation, rejuvenation of irrigation facilities, distribution of sheep among the shepherd community, supply of fish seed to the fishermen community and investment support to the farmers.

The secondary sector has improved significantly and is likely to register a growth rate of 14.9% at current prices in 2018-19. This growth is because of the assured power supply, liberalised industrial policy TS-iPASS, improvements in ease of doing business and availability of skilled manpower. The tertiary sector is likely to register impressive growth of 15.5%.

As per the latest estimates, the state’s per capita income at current prices is estimated at `2,06,107 for 2018-19, against `1,81,102 in 2017-18, showing an increase of 13.8%. This is significantly higher than the national growth of 8.6%, Rao said. “The state government has waived crop loans of over 35,29,000 farmers amounting to `16,124 crore paid by the government to the banks. This was one of the first promises made in 2014 and fulfilled,’’ he said. The government has introduced Rythu Bima to ensure that in the event of the death of a farmer, his family should not be on the road.

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