Farm Loan Waiver Of Rs 34,000 Crore In Karnataka Budget

In the first phase of the crop loan waiver, all defaulted crop loans up to 31 December 2017 will be waived. As an encouragement to the non-defaulting farmers who paid their loan within time, I have decided to credit the repaid loan amount or Rs 25,000, whichever is less.

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Farm Loan Waiver Of Rs 34,000 Crore In Karnataka Budget

Karnataka chief minister in his maiden budget announced farm loan waiver of Rs 34,000 crore while setting Rs 2 lakh as the upper limit for each farmer.

The chief minister, who also holds the finance portfolio, said that to allow farmers to avail new loans, the government will take action to issue clearance certificate by waiving the arrears from the defaulting account. For this purpose, Rs 6,500 crore is earmarked in the 2018-19 budget, he said.

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In the first phase of the crop loan waiver, all defaulted crop loans up to 31 December 2017 will be waived. As an encouragement to the non-defaulting farmers who paid their loan within time, I have decided to credit the repaid loan amount or Rs 25,000, whichever is less, he quoted.

The chief minister said that the welfare schemes like Anna Bhagya (for free rice) and Ksheera Bhagya (meals for school students) will continue to stay in place and the current government will bring in more schemes.

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He recalled his assurance to waive all types of crop loans of farmers taken for agricultural activities within 24 hours of formation of a full-fledged government.

The families of the government officials and officials of the cooperative sector, farmers who have paid income-tax for the past three years, and other ineligible farm loan recipients will be outside the purview of the loan waiver scheme.

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Financial experts and some government officials have already expressed concern over the impact loan waiver may have on the state exchequer.

The budget also comes amid coalition worries and debate over whether there was a need for a full-fledged fresh budget as the government would continue almost all the flagship schemes of the previous government.

Source Link- https://www.firstpost.com/

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