TS Cabinet Likely to Act on Loan Waiver, Hikes

HYDERABAD: All eyes are on the state Cabinet meeting slated for Monday which is expected to firm up decisions to dole out sops to various sections ahead of the Assembly elections.

It is expected to take a decision on the pending crop loan waiver scheme; constituting a pay revision commission (PRC) to hike salaries and pensions; employees health scheme; pay hike for TSRTC staff; funds for Dalit Bandhu, Gruha Laxmi and other such welfare besides compensation for farmers affected by recent heavy rains.

The Cabinet is likely to approve a crop insurance policy to protect farmers from losses on account of natural calamities that have become an annual feature.
The crop loan waiver scheme was a promise made by BRS during 2018 Assembly polls. It promised to waive crop loans up to 'one lakh if it is voted to power again. However, the BRS government failed to fulfill the promise even after nearly five years due to which the banks had declared over 20 lakh farmers as 'defaulters'.

Over 36.8 lakh farmers were found to be eligible for this waiver and for which nearly Rs 25,000 crore was required. But the government waived crop loans to the tune of Rs 1,207 crore covering 5,42,635 farmers, who owed loans up to Rs 35,0000 each.

In order to cater to farmers suffering huge losses due to natural calamities, the state government opted out of Prime Minister Fasal Bima Yojana (PMFBY) from kharif 2020. Effectively, there is no crop insurance scheme in TS from 2018 with the state government refusing to release its share of the premium for PMFBY.
The term of the present PRC ended on June 30 and the cabinet is likely to take a decision on constituting a new PRC. Employees and pensioners have been demanding an effective EHS (employee’s health scheme) for long and they offered to contribute up to two per cent of their basic pay for the purpose arguing that the existing free unlimited cashless EHS launched in November 2014 with the total funding of state government failed to serve the purpose due to fund crunch.

The government is not able to release funds in time due to which arrears have accumulated. Private and corporate hospitals are refusing to admit patients having EHS cards citing arrears by the state government.

The recent heavy rains and floods over the past week caused huge damage to crops in an extent of nearly 16 lakh acres and thousands of houses. The Cabinet is expected to take a decision on payment of compensation to victims.