Karnataka government waives Rs 8,165 crore farmer loans, sets poll agenda

Farmer loans was emerging as the prime agenda for all key political parties in Karnataka

The Karnataka government on Wednesday announced its plans to waive off farmer loans worth Rs 8,165 crore. Chief Minister Siddaramiah told the assembly that the state was waiving off farmer loans in cooperative banks.

After announcing loan waiver that is expected to benefit 22,27,506 farmers, Siddaramaiah urged the Centre to waive off loans from commercial banks. The move comes as a masterstroke by the Congress government to attack the BJP at the centre which has refused to waive off loans. The loan waiver announcement from Karnataka Chief Minister comes a day after Union finance minister Arun Jaitley categorically stated that there were no plans of farm loan waiver.

By waiving off loans partially from state-run cooperative banks, Siddaramaiah has put the ball in the centre's court. The BJP in Karnataka can no longer hold the Congress by the neck over loan waiver but the Congress can now attack the BJP with their newly acquired ammunition.

Reacting to the government's decision, the state BJP said that it was mere election propaganda. "The government has waived off loans keeping elections in mind. Had the government announced this partial loan waiver earlier, many farmers lives could have been saved," said B S Yeddyurappa, President of Karnataka BJP.

Wednesday's announcement will be effective for all loans availed from cooperative societies with outstanding till June 20, 2017. While the waiver is going to cost the exchequer Rs 8,165 crore, it is expected to benefit more than 22 lakh farmers. Chief Minister Siddaramaiah reiterated in the assembly that since the state government had waived off loans from cooperative society, the centre should waive loans from commercial banks.

OneIndia News