The State Government has given administrative sanction for ₹400 crore towards meeting the expenditure for the recently announced scheme for providing financial assistance of ₹1 lakh each to backward classes artisans/vocational communities in the State.
The order follows release of ₹ 100 crore earlier for the scheme taking the total quantum to ₹500 crore. The government has made provision of ₹300 crore in the current year’s budget under the scheme and subsequently enhanced the amount by ₹200 crore so as to cover more beneficiaries. Interestingly, the amount sanctioned so far would enable assistance to 50,000 beneficiaries whereas the number of applications received from the beneficiaries since the announcement was made is said to be much higher.
The administrative sanction assumes significance in the light of the huge financial commitments on the government in the form of various schemes including Dalit Bandhu and Rythu Bandhu. In spite of the financial constraints it has been facing of late, the Government made budgetary provision of ₹17,700 crore for Dalit Bandhu and over ₹15,000 crore for Rythu Bandhu.
In addition, it had announced the launch of Gruha Lakshmi scheme wherein the Government would provide financial assistance to the tune of ₹3 lakh each to beneficiaries from below poverty line families who are in possession of their own lands. The Government had announced its resolve to spend ₹3,900 crore in rural areas and ₹3,450 crore in urban areas under the Gruha Lakshmi scheme.
Modalities for selection of beneficiaries under the Gruha Lakshmi scheme are currently under preparation and are likely to be finalised soon. The government is facing a major challenge in releasing funds for the schemes during the current year as the revenue receipts during the first two months had not been up to the expectations while the restrictions imposed by the Union Finance Ministry on the quantum of market borrowings are continuing.
Being an election year, the government is also faced with the challenge of implementation of waiver of up to ₹1 lakh loans obtained by farmers. Loan waiver was taken up last fiscal and amounts were credited to the accounts of farmers who took loans up to ₹35,000. There has been persistent demand from the farmers who obtained loans above ₹35,000 for implementation of loan waiver as assured to them in the past.
