Cong Govt In Telangana On Right Track On Rythu Bharosa, But It Needs To Cut More

Giving high-value freebies to landlords and rich people is not a good idea when the Telangana government relies on loans for implementing welfare schemes. As per rough estimates, the government will have to shell out nearly Rs 15,600 crore every year for Rythu Bharosa over the next four years. That way, the total amount will be around Rs 62,400 crore. It will not be easy for the government to generate such a large sum

We have entered a brand New Year. As happens in the beginning of a new year, there is palpable optimism in the air about 2025. Also, there is some significance to this calendar year. In this year, the world will complete a quarter of the much-talked about 21st Century. A lot has changed in the last 24 years. The world witnessed mindboggling changes in technological space – the spread of the internet, the rise of social media and a lot more. We are now on the verge of entering into what is called the era of artificial intelligence, which is likely to dominate for the next quarter of the current century.

The world will also make great strides in space tourism. With maverick, hardcore nationalist Donald Trump taking reins of the United States of America, the world is likely to witness many rapid changes as he will try every trick up his arm to keep the global landscape a unipolar world with his country at the helm. That’s the hidden meaning of his popular slogan, ‘Make America Great Again’.

When it comes to India, the country’s economic fundamentals are still strong. This amply reflects in the ever-rising stock markets. So, India is likely to post good economic growth this year as well. Let’s hope that happens without any hurdles.

Coming to Telangana, the Congress government in the State delivered a New Year gift to farmers in the form of Rythu Bharosa scheme despites numerous financial challenges at its doorstep. On Saturday, the State Cabinet cleared this much-awaited scheme for its implementation from January 26.

It’s a known fact that the previous Bharat Rashtra Samithi (BRS) government implemented this scheme as Rythu Bandhu. Initially, it fixed Rs. 8,000 per acre per annum. The amount was paid in two installments (for rabi and kharif seasons). The first installment of Rs. 4,000 per acre was paid during April-May 2018. This high-value agriculture investment support scheme played a key role in the victory of BRS (then Telangana Rashtra Samithi) in December 2018 Assembly polls. Subsequently, the amount was enhanced to Rs. 10,000 per acre per annum. Overall, the BRS government paid nearly Rs. 80,000 crore. In the Government Order issued on April 4, 2018, it was said that the scheme was proposed for agriculture and horticulture crops to enable farmers to buy seeds, fertilisers and pesticides, among other farm essentials. But in reality, Rythu Bandhu was paid to waste lands, commercial lands, real estate ventures, farmhouse properties and all other agricultural lands which are not under cultivation.

Further, the amount was paid without cap on landholding. As a consequence, landlords who owned tens and hundreds of acres of land also benefited from this. This unbridled payment of public money for wastelands and to rich people, evoked criticism from many quarters. As per estimates by the present government, a whopping Rs. 21,284 crore was paid for those lands, which were not under any sort of cultivation. That’s a sheer waste of precious public money.

In this backdrop, the present Congress government, under the leadership of Anumula Revanth Reddy, did a right thing by excluding such lands from its Rythu Bharosa scheme. The Telangana Congress had promised Rs. 15,000 per acre a year in its poll manifesto. But the State government fixed Rs. 12,000 per acre per annum, citing financial constraints. So, it has its task cut out to convince farmers on this. As promised, it also announced Rs. 12,000 per year to agriculture labourers under Indiramma Atmiya Bharosa Scheme. This is a good gesture as the poor in villages need such handholding more than farmers.

However, there is no clarity on tenant farmers. Telangana Congress promised Rythu Bharosa subsidy to tenant farmers as well. The Congress government has made it clear that it will extend Rythu Bharosa benefits to all the cultivated lands. These obviously include those being cultivated by tenant farmers. But only landowners will get the benefit, not tenant farmers. According to some estimates, there are over 25 lakh tenant farmers in Telangana. That’s a significant number. If the government fails to help them as promised, it may face political backlash.

Further, the Revanth government should have restricted this scheme to those farmers who have five acres or less. Moreover, it should have excluded tax payers, government employees, doctors and advocates. Giving high-value freebies to landlords and rich people is not a good idea when it relies on loans for implementing such schemes.

As per rough estimates, the government will have to shell out nearly Rs. 15,600 crore every year for Rythu Bharosa for next four years. That way, the total amount will come out to be around Rs. 62,400 crore. If the Atmiya Bharosa Scheme is added, the amount will go up further.

For making the first payment of these two schemes, the Telangana government mortgaged lands and borrowed Rs. 10,000 crore from a private bank. So, it will not be easy for the government to raise such large amounts for future payments. Instead, it should have done more diligent exercise and further reduced the burden from the Rythu Bharosa scheme. If it fails to implement what it announced now, the backlash would be even more intense. Moreover, it has to implement its more important promise, which is doubling the old-age pension.

Does the government fear criticism from BRS if it tweaks Rythu Bharosa more? Perhaps so! But the fact of the matter is that BRS lost polls in rural areas despite shelling out a humongous amount under Rythu Bandhu and implementing a plethora of other welfare schemes. That was primarily because of severe resentment against its sitting MLAs. If the Congress convinces people about the precarious financial position and goes for schemes that can be implemented for the deserving without any hassles, the grand old party will retain the confidence of people in the next elections also.

As for BRS, it looks like it is yet to learn lessons from its ignominious defeat in the last Assembly elections. The pink party leased the lucrative Outer Ring Road (ORR) to a private company for Rs. 7,800 to raise funds for the last installment of Rythu Bandhu. Still, it could not release the amount to farmers in time. Now, the pink party is demanding Rythu Bharosa benefits to barren, commercial lands also. This shows its scant regard for public money. If it mends its ways and focuses on practically-possible issues, it can win back people’s confidence. Otherwise, it will be the end of the road for the pink party for another five years.

As far as the Congress is concerned, it is on the right track when it comes to implementing Rythu Bharosa. But it should bite the bullet and do more to reduce the burden on the exchequer without cutting benefits to the poor and deserving sections. That’s the need of the hour. That will be good for its political future in Telangana as well. Will the Congress work in that direction?