TG Govt’s Spend On Farm Debt Set To Rise

In 2022-23, the total outstanding guarantees for Telangana were 15.1% of GSDP, on an average the outstanding guarantees of 27 States stood at 3.9% of their GSDP

Hyderabad: A report released by the Institute for Policy Research Studies (PRS) on Friday signaled in no-uncertain terms that the Telangana government would have to spend more on farm loan waiver in the current financial year.

PRS’ 9th edition of the annual report on State Finances examined certain key issues and emerging trends in State finances to understand their fiscal health, as States together spend about 1.5 times of what the Centre does.

According to the report, in 2024-25, nine States have budgeted to spend over Rs1 lakh crore in total, largely on unconditional cash transfer schemes for women beneficiaries. Such schemes are part of poll promises of current governments in Punjab, Haryana, and Telangana.

It further highlighted that Telangana was one of the 10 States and UTs to get over 50 per cent revenue receipts through own tax receipts. Own tax revenue is estimated to be the largest source of revenue for most States. Telangana has budgeted to spend 64 per cent of its revenue receipts (2024-25 BE) on committed expenditure (salaries, interest and pension), whereas on average States spend 52 per cent.

In 2022-23, the total outstanding guarantees for Telangana were 15.1 per cent of GSDP, on an average the outstanding guarantees of 27 States stood at 3.9 per cent of their GSDP. Outstanding guarantees are contingent liabilities for the State governments, which States may have to honour in certain cases, the Institute of PRS mentioned in an official release.