Hyderabad: In dire need for nearly Rs. 35,000 crore annually to fulfill the promises he made with the farmers, Telangana Chief Minister Kalvakuntla Chandrashekhar Rao is expecting a major relief from the BJP-led NDA Government at the Centre as Prime Minister Narender Modi is reportedly planning to launch ‘Rythu Bandhu’ type scheme at the national level to provide investment support to farming community.
In the budget for 2018-19, the Telangana Government had allocated Rs. 12,000 crore to provide investment support of Rs. 8,000 per acre to farmers in two seasons of Rabi and Khariff under ‘Rythu Bandhu Pathakam’. During elections, KCR had promised to increase the investment support to Rs. 10,000 per acre. Therefore, from this year onwards, the State Government would need nearly Rs. 15,000 crore. Further, the government also need to spend nearly Rs. 20,000 crore to fulfill the promise of waiver of crop loans up to Rs. 1 lakh. Therefore, the Telangana Government would need about Rs. 35,000 crore during the financial year 2019-2020.
If Prime Minister Narender Modi launches ‘Rythu Bandhu’ type scheme at the national level and provide Rs. 8,000 per acre investment support to farmers, then the financial burden on the State Government would get reduced by more than half. The Central Government usually implements its scheme with financial burden being shared by Centre and State in the ratio of 60:40. Pradhan Mantri Fasal Bima Yojana is one such example.
In the proposed investment support scheme for farmers, the Central Government is planning to bear 70% of the burden. If the Centre decides to give Rs. 8,000 crore per acre under the scheme, then the State’s contribution will be Rs. 2,400 per acre and remaining Rs. 5,600 will be given by the Centre. Since, KCR has promised to increase the amount to Rs. 10,000, the State Government will have to contribute Rs. 4,400 per acre. In this case, instead of allocating Rs. 15,000 crore per year, the Telangana Government will need about Rs. 7,000 crore while saving Rs. 8,000 crore for other purposes.
The Central Government would need about Rs. 3 lakh crore every year to provide investment support to farmers cultivating on 34.59 crore acres across the country.