State govt’s bank-linked subsidy for minorities found wanting

Only 2.11% of the budgetary allocation for the purpose spent in financial year 2022-23, according to RTI data

The Telangana government’s push to empower small businessmen from the minority communities by means of its bank-linked subsidy scheme has left much wanting as only 2.11% of the budgetary allocation was spent for this purpose in financial year 2022-23, according to data obtained through the Right to Information (RTI) Act.

Researcher and RTI activist M.A. Akram filed the RTI and sought to know the allocation and the expenditure of the Minorities Welfare Department (MWD) under various heads. According to the data, the allocation for the bank-linked subsidy scheme for financial year 2022-23 was ₹ 28.31 crore and the expenditure stood at a mere ₹ 60 lakh.

The expenditure in the current financial year was poor as compared to previous years. For instance, while the allocation in FY 2020-21 was ₹ 28.31, the expenditure was ₹ 15 crore. The next year, while the allocation was ₹ 28.31 crore, the expenditure stood at a little over ₹ 7 crore.

“The bank-linked subsidy is a good initiative, what matters more is that loans are handed out as soon as possible. Applicants have to spend up to ₹ 1,200 for the required documentation at the time of submission. The process should be made easier, and the wait shorter. The government has been speaking extensively about the scheme, but should ensure that they follow through,” Mr Akram said.

A source with the knowledge of the issue said that the delay is on account of certain processes. “The Finance Department is yet to clear bills. Since certain slabs of the subsidy have a bank or applicant component, there is a day. However, the file has been circulated and a positive outcome may be expected by the end of this month,” the source claimed.

According to officials, there has been a tremendous response to the scheme. The Telangana State Minorities Finance Corporation, the MWD agency which deals with the scheme, received over 2.17 lakh fresh applications. However, the previous rounds of applications were cancelled.

An official said that district collectorates have been requested to send beneficiary lists, which is expected shortly. Release of funds to beneficiaries is likely once these lists are received.