Will TRS Hike Taxes To Fund Its Schemes?

It is reality check time for the ruling TRS in Telangana. After making tall promises about Rythu Bandhu and pension schemes, it is now struggling to find resources to fund them. The Government needs about Rs 6000 crore for Rythu Bandhu as it has increased the investment subsidy amount to Rs 10000 from Rs 8000. The amount would be given to each farmer in two instalments to support Rabi and Kharif seasons. The Government is now scouting for money as it has to pay an instalment by the end of this month. Last year's rabi subsidy amount is also pending.

Similarly, Aasara scheme, which involves giving various kinds of pensions to over 40 lakh beneficiaries is also proving to be a millstone around Government's neck. To add to the burden the pensionable age for old age pensions has been brought down from 60 years to 57 years adding 20 lakh new beneficiaries. During the time of elections, the pension amount was raised from Rs 1500 to Rs 3000. To pay up all these and implement the schemes successfully, the government needs additional financial resources. For these the government has only two options – take loans or hike taxes. If loans are taken, they would be paid by hiking the charges. Both ways, the citizens are the worst sufferers.