On day one, ₹586 cr. deposited under Rythu Bandhu

The State Government has deposited ₹586.66 crore under Rythu Bandhu, the flagship farmers investment support scheme, on the first day on Tuesday.

Crediting of the amount started following Chief Minister K. Chandrasekhar Rao’s directions to the officials concerned to credit the amounts into accounts of all eligible farmers from Tuesday. The first day’s amount covered 19.98 lakh farmers owing one acre or less. The government which is struggling hard to raise resources to meet the commitment under Rythu Bandhu has raised ₹3,000 crore through sale of securities in the auction conducted by the Reserve Bank of India in the morning.

The amount would be credited into the government’s account on Wednesday paving the way for crediting of amounts into farmers with larger holdings in the coming days. While the number of eligible farmers was around 65 lakh initially, it has increased to 68.1 lakh recently following the momentum witnessed in the transactions pertaining to agriculture lands in different parts of the State.

The government made budgetary provision of ₹14,800 crore for Rythu Bandhu at ₹7,400 crore in two instalments, but it is likely to incur more expenditure following increase in the number of accounts. The estimated amount that would be credited into the farmers’ accounts this season has accordingly been pegged at ₹7,521 crore.

Finance department officials are continuing their parleys with the Union Finance Ministry seeking its nod to raise open market borrowings of ₹52,127 crore as projected in the budget for the current year. “Still awaiting the final confirmation,” a senior official said when asked whether the government could convince the Centre for raising OMBs in line with the projections.

Finance Minister T. Harish Rao said the crediting of amounts reflected the Chief Minister’s commitment towards welfare of farmers and the government would deposit the amounts assured to farmers at the earliest.

He said despite the financial hurdles created by the Central Government, the government was determined to provide investment support to farmers on time.

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Printable version | Aug 9, 2022 1:21:29 pm |