BJP fears isolation on farm-loan waiver issue

Various pposition parties and ally Shiv Sena sing pro-farmer tune

The ruling Bharatiya Janata Party (BJP) in Maharashtra has been cornered by its ally Shiv Sena and Opposition Congress and Nationalist Congress Party (NCP) on the issue of loan waiver to farmers reeling under crisis due to dry spell and threat of a third year of drought in succession.

A section of the BJP has conveyed to Chief Minister Devendra Fadnavis and the high command that the party will be further isolated on this politically crucial issue and might have to pay the price in the coming elections to the local self-government and civic bodies.

However, Fadnavis and some senior ministers believe that the government will not be in a position to waive loan at this point in time when the financial condition of the state is fragile. The state’s public debt is reported at Rs 3.50 lakh crore plus, while the revenue deficit is expected to increase to Rs 7,000 crore against the Budget estimate of Rs 3,757 crore by end of 2015-16.
 

A BJP minister, who did not want to be named, told Business Standard: ''As per the present estimates, the government will need nearly Rs 40,000 crore for full loan waiver of farmers. We cannot afford to do that. But the government may weigh the option of interest rate waiver.''

The minister said Fadnavis was expected to make an announcement in this regard either next week in the ongoing monsoon session of the state legislature.

Fadnavis had already announced that his government was equally concerned about the farmers’ welfare. However, he made it clear that the problems faced by farmers cannot be solved only by loan waiver.

BJP's ally Shiv Sena, which is adamant on loan waiver to farmers, has warned that if the government does not strive for farmers, they will deem this government useless.

NCP legislative party leader Ajit Pawar in a blistering attack said  the government was spending Rs 3,000 crore for making the state toll-free and abolishing the local body tax. He attacked the state for waiving off Rs 3,200 crore of a phone company and giving Rs 10,000 crore to Nepal but not providing relief to its own farmers.

The leader of opposition in the state assembly Radhakrishna Vikhe-Patil has reminded the BJP that complete loan waiver is the only solution to farmers' woes.