Telangana Budget 2022: KCR’s flagship scheme Dalit Bandhu gets Rs 17,700 crore

The government is aiming to benefit around 2 lakh Dalit beneficiaries with this allocation, by next year.
Finance Minister Harish Rao during budget introduction in state assembly.
Finance Minister Harish Rao during budget introduction in state assembly.
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The Telangana state budget on Monday saw the government allocating Rs 17,700 crore for its flagship Dalit Bandhu scheme for the year 2022-23. The budget was presented by the state Finance minister Harish Rao without the customary address of the Governor before the presentation of the budget.While the Minister proposed a total of Rs 2.56 lakh crore expenditure for the financial year of 2022-23, the substantial allocation for the Dalit Bandhu scheme, will see a Rs 10 lakh cash transfer scheme for entrepreneurs from SC communities. 

Last year saw Rs 21,306 crore being allocated for SC’s Development Fund, but this year, the Dalit Bandhu scheme which was announced in August 2021, also seems to have also had a substantial allocation, adding to the growing list of welfare programmes by the TRS government.

Minister Rao said the programme was meant for empowerment of Dalits and to exclude them from poverty. “The scheme will provide employment, self-respect and development. It is an effective policy. Earlier economic development schemes could not yield much results owing to the rules linking the schemes with bank loans and collateral security. There is no bank linkage and no collateral security. The beneficiary has complete freedom to select any business/activity, he/ she is good at. The complete financial assistance is in the shape of grants which need not be paid back,” he explained.

A Dalita Rakshana Nidhi (Protection Fund) has also been established to assist the Dalit Bandhu beneficiaries in case of unfortunate events, in order to avoid financial suffering. The scheme will be implemented in Huzurabad Assembly segment and four more mandals - Chintakani, Tirumalagiri, Nizamsagar and Charagonda along with 118 assembly constituencies.According to the Minister, as many as 11,800 beneficiaries from 118 assembly constituencies (100 from each) will be able to avail the scheme in the present phase.

By the end of March this year, the government is expecting to pay cash through Direct Benefit Transfer to roughly 40,000 families under the scheme at a cost of Rs 4,000 crore. The government hopes to benefit two lakh beneficiaries by next year. 

"Dalit Bandhu" which was launched last year in Huzurabad of Karimnagar ahead of the bye -elections, has a become point of controversy with the Opposition alleging the scheme was initiated to lure voters, as the scheme allows every SC family to present a viable income generating scheme to get the money. Opposition parties have alleged that the beneficiaries are being selected in a non-transparent way. With assembly elections over an year away,  KCR government seems to be reaching out to Dalits who comprise around 18% in the state population with Dalit Bandhu scheme.

The scheme was started in Vasalamarri village in Turkapally mandal in August 2021, and was later launched in Huzurabad assembly constituency. At the time of the launch, 21,000 dalit families in Huzurabad constituency were expected to benefit from this programme. Around 17 lakh Dalit families are expected to make use of this scheme at a cost of Rs 1.7 lakh crore, which will be implemented in a phased manner.

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