HYDERABAD: The newly-appointed finance minister, T Harish Rao, is likely to face tough challenges ahead with opposition leaders slamming the TRS for “ignoring the state’s financial health”.
In February, chief minister K Chandrasekhar Rao had introduced a vote-on-account budget and sought an approval of expenditure for six months. The chief minister had presented a budget of Rs 1.8 lakh crore. However, sources said that the budget will touch Rs 1.7 lakh crore this time around, with tough measures on unnecessary expenditure.
“Though there may not be any cut in budget allocation for the welfare sector, there will be a delay in the release of funds,” said a source.
One of the major challenges facing the TRS government is the payment of old-age pensions. For the past two months, pensions have not been paid regularly and the state government needs Rs 870 crore each month for payment of pensions.
“If the pension scheme eligibility age is reduced to 57, the state government would need another Rs 200 crore every month,” said sources.
Moreover, in the voteon-account budget, Rs 6,000 crore was allocated for the crop loan waiver scheme. However, farmers and bankers have not been given guidelines on crop loan waiver, resulting in tardy pace of progress of crop loan disbursement. Also, disbursement of another Rs 2,500 crore is pending under the Rythu Bandhu scheme.
Sources also informed that there may not be any pay revision for government employees, as it will burden the state further. While KCR will present the budget in the assembly, Harish Rao will present the same at the Legislative Council.
The budget will be presented on Monday.
In February, chief minister K Chandrasekhar Rao had introduced a vote-on-account budget and sought an approval of expenditure for six months. The chief minister had presented a budget of Rs 1.8 lakh crore. However, sources said that the budget will touch Rs 1.7 lakh crore this time around, with tough measures on unnecessary expenditure.
“Though there may not be any cut in budget allocation for the welfare sector, there will be a delay in the release of funds,” said a source.
One of the major challenges facing the TRS government is the payment of old-age pensions. For the past two months, pensions have not been paid regularly and the state government needs Rs 870 crore each month for payment of pensions.
“If the pension scheme eligibility age is reduced to 57, the state government would need another Rs 200 crore every month,” said sources.
Moreover, in the voteon-account budget, Rs 6,000 crore was allocated for the crop loan waiver scheme. However, farmers and bankers have not been given guidelines on crop loan waiver, resulting in tardy pace of progress of crop loan disbursement. Also, disbursement of another Rs 2,500 crore is pending under the Rythu Bandhu scheme.
Sources also informed that there may not be any pay revision for government employees, as it will burden the state further. While KCR will present the budget in the assembly, Harish Rao will present the same at the Legislative Council.
The budget will be presented on Monday.
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