Karnataka Budget 2018: Kumaraswamy waives off Rs 34,000 crore farm loan

Bengaluru, July 5: Karnataka Chief Minister HD Kumaraswamy Rs 34,000 crore farm loan waiver in the maiden budget of the Congress-JDS coalition government on Thursday.

In the budget speech, Kumaraswamy said, "I have decided to limit the loan amount to Rs 2 lakhs. Due to this crop loan waiver scheme, farmers will get the benefit of Rs 34,000 crore."

"I have decided to waive all defaulted crop loans of farmers up to 31 Dec 2017 in the first stage. Farmers who repaid the loan within time, as an encouragement to the non-defaulting farmers, I have decided to credit the repaid loan amount or Rs 25000 whichever is less," said Kumaraswamy.

Kumaraswamy is presenting Rs. 2,18,488 budget four months after his predecessor presented the budget before the Karnataka Assembly elections.

Siddaramaiah had waived farm loans upto Rs 50,000 obtained from co-operative banks but did not waive loans from nationalised banks, saying this would have serious implications on the state if it was not supported by the central government.

It may be recalled that Kumaraswamy had promised farm loan waiver before the elections. The JD(S), in its election manifesto, had promised to write off all categories of loans of farmers which would result in the financial hit of Rs 53,000 crore on the exchequer.

After being sworn-in as CM, Kumaraswamy reiterated, "I have clearly said that I will waive farm loans. I had promised during the election that I will do it in 24 hours. That is true. At least you should give time to breathe. Today, I have limitations."

More details awaited.

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