Karnataka govt to waive loans upto Rs. 50000; big relief to farmers

Laura Christensen
June 22, 2017

Leader of Opposition in the Maharashtra Assembly Radhakrishna Vikhe-Patil said that Punjab has already announced loan waiver for farmers and the state government is still holding discussion about this issue.

Karnataka is now the fourth state to announce farm loan waiver program following Uttar Pradesh, Maharashtra and Punjab. A sharp slowdown in lending to the farm sector could shave 1 percentage point off the system loan growth, it estimates. "We had planned rasta roko and rail roko agitiation on June 13, but withdrew it following and assurance from the government".

Though the 2017-18 budget was expected to be a poll-oriented one ahead of the 2018 assembly polls, it had no mention of the loan waiver.

Admitting that the loan waiver would impact the state's finances, Siddaramaiah, who also holds the Finance portfolio, said that as the farmers were in distress due to drought, it was his government's duty to respond to their plight.

The total farm loans in Karnataka stands at over Rs1.16 trillion.

US Fed interest rate hikes keep coming
Fed policymakers also gave some details for how they intend to shrink their $4.5-trillion balance sheet beginning this year. USA crude fell 3.7 per cent to settle at $44.73 per barrel and Brent settled at $47.00, down 3.5 per cent.

Summary: Aurangabad: The farmers ' steering committee has made a decision to burn copies of the June 14 government resolution on Wednesday, in protest against the government's alleged failure to keep its promise on farm loan waiver The GR says that the benefit of the loan scheme was meant exclusively for agriculturists whose sole source of income is from farming. But, we have taken this decision in the interest of the farmers of Karnataka. Farmers and banks reap a good return when things go well.

However, Finance Minister Arun Jaitley earlier in June had said the Centre would not fund for loan waivers for farmers, adding that the states must fund for this on their own expense.

What's the cause for concern? Farmers are not a happy lot -about 40% of them would quit if they can, as per the NSSO's 59th survey. A waiver can only offer temporary relief WHAT PUSHED CM FOR THE WAIVER? They have claimed that there is a windfall gain of Rs.3 lakh crore per annum because of the fall in the crude prices.

While talking on the floor of the house, Siddaramaiah throws a challenge to the BJP to persuade the Central government to waive off the rest of the loans in the nationalized banks. The waiver would cost the exchequer Rs 8,165 crore.

Other reports by My Hot News

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