Telangana tightens purse strings on new schemes

Facing acute fiscal stress, the Telangana government has decided against launching new welfare schemes in the next financial year. Departments have been told to focus on existing programmes, raising doubts over the rollout and scaling up of the Congress government’s six guarantees

Hyderabad: For people pinning hopes on getting their applications approved under existing government schemes or awaiting the announcement of new initiatives from the Congress government, the next financial year is likely to be a disappointment. The State government, which commenced budget preparations for the next financial year, will be focusing on survival budgeting and has no fresh largesse anytime soon.

Highly placed sources in the Finance department confirmed that the Congress government in Telangana has effectively slammed the brakes on new welfare initiatives, issuing explicit instructions to all departments not to submit proposals for fresh schemes without prior approval. While the instructions were issued orally, the directives in the recent government order on budget preparations also hinted at the same, pointing to acute fiscal stress.

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In its budget proposal orders, the State government told departments to design the budget for optimal allocation of “scarce resources”, prioritising ongoing programmes. The budget proposals were to be prepared after taking into account various socio-economic and political considerations and the priorities of the government.

Officials were instructed to identify relevant Centrally Sponsored Schemes (CSS) that could be implemented in the State and tap more grants from the Centre, ensuring full utilisation. Departments were also directed to critically review existing schemes and avoid any new financial commitments unless expressly cleared at the highest level.

“Even flagship promises, including the much-touted six guarantees, are unlikely to be fully realised in the next financial year,” a senior official told Telangana Today.

This austerity push sharply contrasts with the expansive promises made by the Congress before coming to power. With no room for new schemes and existing ones under scrutiny, the prospect of rolling out or scaling up the six guarantees appears increasingly remote.