State struggling to mobilise resources for Rythu Bandhu, other commitments

Scheme involves crediting ₹7,400 cr. into accounts of 60 lakh farmers

The State government is struggling hard to fulfil the promise of crediting the amounts assured under its flagship Rythu Bandhu, farmers’ investment subsidy scheme, from June 15 in view of the steep fall in the revenues on account of novel Coronavirus (COVID-19) pandemic. The investment subsidy scheme involves crediting of around ₹7,400 crore into the accounts of little over 60 lakh farmers between June 15 and 25 as assured by Chief Minister K. Chandrasekhar Rao. The government has decided to raise ₹2,500 crore open market borrowing through the Reserve Bank of India during the auction to be held on June 8, but it will still fall way short of the target of ₹7,400 crore required for the Rythu Bandhu. The State will exceed the target of ₹8,000 crore open market borrowings tentatively projected for the first quarter of the current financial year and the same had been submitted to the RBI ahead of the commencement of the financial year. Availing of ₹2,500 crore in Tuesday’s auction would take the total borrowings from April 1 till date to ₹8,500 crore.