The Karnataka government has decided to waive off massive farmer loans in phases, said HD Kumaraswamy, the chief minister of the state in his first budget speech.
Both the parties in the ruling alliance – JD(S) and the Congress – had said that they will waive off the farmer loans if elected to power, during the recently concluded polls.
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“I have decided to limit the loan amount to Rs 2 lakh. Due to this crop loan waiver scheme, farmers will get the benefit of Rs 34,000 crore,” Kumaraswamy told the Vidhana Soudha.
Here’s what the Karnataka farmer gets:
- The loans will be waived off in phases
- Crop loans worth Rs 34,000 crore waived off
- Loans upto Rs 2 lakh per farmer to be waived off
- To facilitate the farmers to avail new loans action will be taken by the govt to issue clearance certificate by waiving the arrears form the defaulting account. For this purpose, Rs 6500 crore is earmarked in 2018-19 budget
Other takeaways from the state budget
- Proposed to increase power tariff by 20 paise per unit and levy a higher tax on fuel.
- Petrol prices will go up by Rs. 1.14 per litre and diesel by Rs. 1.12 per litre.
- Increase excise duty on Indian made foreign liquor by 4 per cent
- Welfare schemes of the previous Congress government to continue – including rice at Rs 1 a kg to the poor and Indira Canteens that serve low-cost meals.