Karnataka irrigation subsidy bill could reach Rs 35,000 crore due to drought
Increased electricity consumption by farmers for irrigation pumpsets is expected to nearly double the current fiscal's budgeted subsidy amount.
Karnataka's irrigation subsidy bill is likely to reach Rs 35,000 crore this fiscal year as drought-hit farmers draw more electricity for pumpsets, according to the Deccan Herald.
Additional Chief Secretary (Finance) Ritesh Kumar Singh said the figure could hit the Rs 35,000 crore mark if there is no curtailment of power. The government has budgeted Rs 19,290 crore for free power for irrigation pumpsets in the current fiscal.
Speaking at a national conference on state finances organised by the Fiscal Policy Institute, Singh said the subsidy cost has almost doubled. He described the potential Rs 35,000 crore figure as "very frightening."
The official noted that drought has increased electricity consumption because rainfall is less and there is moisture stress. Karnataka has declared 226 out of 240 taluks as drought-affected.
Singh said there are no easy answers regarding whether the state can resort to load-shedding or ask farmers not to draw so much power from the grid. He added that the state government is grappling with the issue.
Karnataka's fiscal deficit stands at 2.95 per cent of GSDP, which is slightly below the 3 per cent limit. Singh noted that stress on state finances is higher in the run-up to elections, with the next Assembly election being one-and-a-half-years away.