Hyderabad: Tuition fee reimbursement, scholarships and social security pensions have almost emptied the TS treasury in April. The government released nearly Rs 7,500 crore in one go for these schemes last week, leaving meagre funds for other schemes.
The government is struggling to adjust funds for Arogyasri and crop loan waiver scheme. It owes corporate and private hospitals Rs 250 crore towards Arogyasri and Rs 4,500 crore towards crop loan waiver. Hospital have threatened to stop Arogyasri services from May 1 if the dues are not cleared, while banks have refused to disburse fresh loans if their dues are not cleared.
Following the directions of Chief Minister K. Chandrasekhar to clear arrears of fee reimbursement and scholarships for students and release the entire year’s (2016-17) funds required for Aasara pensions for senior citizens, widows and physically-challenged, the finance department has issued Budget Release Orders (BROs) last week releasing Rs 4,438 crore for Aasara pensions and Rs 3,061 crore for fee reimbursement and scholarships.
At this stage, the private hospitals and banks are putting pressure on government for release of arrears the government owes to them.The government is trying to pacify hospitals by promising to release Rs 100 crore in 2-3 days and the balance amount next month.
“We need to adjust another Rs 2,600 crore towards salaries for staff since the month ends in a week. There are a few other financial commitments to honour for irrigation projects, water grid and Mission Kakatiya schemes. All this have put pressure on state finances. We have lined up auction of bonds through RBI on April 26 and May 10 to raise Rs 2,000 crore. The situation is expected to ease by then,” said a finance department official.
The government already raised Rs 1,000 crore through auction of bonds on April 18. However, it has to clear Rs 4,250 crore arrears to banks towards third instalment of crop loan waiver scheme in May. With good rains predicted in kharif season starting June this year, the government expects huge demand for crop loans in kharif (June-September).
The banks are insisting on payment of third instalment of loan waiver scheme in May so that they can start process for disbursal of fresh crop loans from May-end.
