Telangana: Cabinet to meet on revenue plan as financial crisis stalls key welfare schemes

To bolster revenue, the Cabinet may discuss further hikes in market value of lands and registration charges, following recent liquor price revisions

Hyderabad: Amid a deepening financial crisis, the State Cabinet is set to meet on Thursday to deliberate on critical issues, including a roadmap for revenue mobilisation. The Congress government, under pressure over stalled welfare promises, is struggling to fund key schemes such as Rythu Bharosa, Rajiv Yuva Vikasam, Indiramma Houses, fee reimbursements and employee dues.

Chief Minister A Revanth Reddy recently admitted the government is unable to raise loans, raising concerns of a looming fiscal collapse. With Rs.13,200 crore required for Rythu Bharosa dues, farmers are still awaiting support for the Yasangi season as Vaanakalam sowing begins.

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The Rajiv Yuva Vikasam scheme, with a projected outlay of Rs.6,000 crore, was quietly deferred despite public assurances and preparatory work. A decision on its future is likely in the Cabinet.

Employees, awaiting six pending DAs and other service-related resolutions, are also mounting pressure. A recent committee report is under consideration, with even a single DA implementation estimated to cost Rs.700–800 crore.

The Indiramma Housing scheme, aimed at building 4.5 lakh houses, also hangs in the balance, requiring Rs.22,500 crore. Though beneficiary selection is complete, fund release remains stalled.

To bolster revenue, the Cabinet may discuss further hikes in market value of lands and registration charges, following recent liquor price revisions aimed at boosting excise collections.

Decision on employee demands

The State Cabinet meeting, to be held on Thursday, is expected to take a decision on long-pending employee demands, including pending DAs, service issues, and welfare support, as financial strain continues to haunt the Revanth Reddy government. A report summarising discussions between the three-member officers committee, the Finance Department, and various other Ministries will be submitted for the Cabinet approval.

Deputy Chief Minister Mallu Bhatti Vikramarka, who chaired a key meeting with the Joint Action Committee (JAC) of Telangana Employees Unions at Dr BR Ambedkar State Secretariat on Wednesday, assured the unions’ representatives that the government remains committed to resolving their issues. Admitting that several dues to employees had piled up, he assured to resolve the employees’ grievances.

“Despite financial limitations, the Cabinet is determined to prioritise the employees’ issues along with public welfare, while maintaining fiscal responsibility,” he said. he said the Cabinet sub-committee comprising him along with D Sridhar Babu and Ponnam Prabhakar, had actively held talks with employees’ unions and chalked out a viable solution.