Overview of the Blog

{ This blog critically examines the Telangana Budget 2025, focusing on the agricultural sector. While the government has allocated Rs 24,439 crore to agriculture, the blog highlights discrepancies in fund distribution, raising concerns about transparency. } 

The Telangana government has once again prioritized agriculture in its annual Budget, allocating a total of Rs 24,439 crore for the sector. However, reading through the Budget document reveals significant discrepancies in numbers, making it challenging to assess the real impact of these allocations. The “Budget at a Glance” document lists major schemes such as Rythu Bharosa (Rs 18,000 crore), paddy bonus (Rs 1,800 crore), and Indiramma Atmeeya Bharosa (Rs 600 crore), but the departmental allocations tell a different story. A prompt reconciliation of these figures is necessary to ensure transparency, as the real impact of the Budget lies in the details.

Shortcomings in Rythu Bharosa and Loan Waiver Implementation

Last year’s Budget saw Rs 32,000 crore allocated for agriculture, largely directed toward fulfilling electoral guarantees, particularly the loan waiver and Rythu Bharosa. The implementation of the Rs 20,616 crore loan waiver within a year is commendable, especially when compared to the previous government’s prolonged five-year waiver process. However, many farmers have raised grievances over being excluded from the waiver, an issue the present administration must address urgently.

The biggest failure of the Congress-led government has been the implementation of Rythu Bharosa. The scheme continues to exclude tenant farmers and imposes no limit on the number of acres per owner, effectively mirroring the flaws of the previous Rythu Bandhu scheme. Furthermore, the Budget speech disappoints by not acknowledging the 22 lakh tenant farmers of Telangana, who remain unrecognized and unsupported.

Budgetary Gaps in Supporting Agricultural Workers

The government’s promise to support landless agricultural workers has been partially met through the Indiramma Atmeeya Bharosa scheme. However, with a budgetary allocation of only Rs 413.52 crore, the scheme will provide Rs 12,000 per household to just 3.44 lakh beneficiaries. Considering that Telangana has 34.52 lakh active MGNREGS job card holders, it is surprising that only 10% qualify for the scheme. The proportion of landless agricultural households is certainly much higher, warranting a broader support mechanism.

Need for a Holistic Approach Beyond Guarantees

As the government enters its second year, it must move beyond election guarantees and address pressing agricultural challenges. The crop insurance scheme, which received an allocation of Rs 981 crore last year, was never initiated. While the same amount has been allocated again in the current Budget, timely implementation is crucial for the upcoming Kharif season.

Similarly, the Rythu Bima allocation remains unchanged from last year, meaning the election promise to extend the scheme to landless agricultural workers remains unfulfilled. Furthermore, essential agricultural initiatives continue to be starved of funds due to the overwhelming focus on guarantee schemes.

This is evident in the meager allocations for:

• Rashtriya Krishi Vikas Yojana – Rs 34 crore
• Farm Mechanisation – Rs 25 crore
• Soil Health and Fertility Management – Rs 5.4 crore
• Crop Diversification – Rs 0.2 crore
• National Mission on Natural Farming – Rs 1.6 crore

Increased state funding for these initiatives would also attract a larger share of centrally sponsored funds, boosting overall agricultural development.

The Way Forward: A Comprehensive Agricultural Policy

The Telangana government must address two critical concerns simultaneously—fulfilling unkept promises to tenant farmers, agricultural workers, and crop insurance, while also formulating a comprehensive agricultural policy that extends beyond short-term guarantees.

Sustaining agricultural growth requires strategic investments in:

• Crop Diversification – Encouraging farmers to grow diverse crops to reduce dependency on paddy and cotton.
• Market Infrastructure – Strengthening storage, transportation, and marketing facilities for agricultural produce.
• Soil Health and Sustainable Farming – Increasing incentives for ecological and organic farming.
• Farm Mechanisation – Ensuring small and marginal farmers have access to modern agricultural equipment.

With tens of thousands of crores being directed towards guarantee schemes, a few hundred crores strategically invested in these critical areas could significantly enhance the long-term sustainability and productivity of Telangana’s agriculture sector.

In conclusion, while electoral guarantees are important, the government must take a long-term approach to agricultural policy. A balanced strategy that ensures immediate financial support while fostering sustainability, innovation, and resilience in farming will be key to Telangana’s agricultural success in the years to come.