If the buzz in political circles is to be believed, Telangana government is thinking on the lines of imposing the Land Ceiling Act. The controversial act will put a cap on land to each individual and the extra land present with them will be taken back by the government. Telangana Rashtra Samiti had promised to give a two bed room flat to eligible BCs and also 3 cents land for landless farmers along with one year financial support for irrigation.
However Land Ceiling Act will bring down the real estate boom in the state. Also will draw backlash for the government from upper middle class and rich people in the society. Experts say Land Ceiling Act will not do any good for the state. People will hoard money in their houses than investing it. When there is no money flow in the economy, there are no taxes to the government and when there are no taxes, obviously there will not be any welfare programmes and development.
