Karna CM announces additional farm loan waiver

Karnataka chief minister H D Kumaraswamy today announced an additional farm loan waiver of Rs10,700 crore in respect of cooperative banks, but refused to bow to pressure from coalition partner Congress to roll back the fuel price hike proposed in the state budget.

A week after unveiling a Rs 34,000 crore farmloan waiver in his July 5 budget, Kumaraswamy informed the state assembly that his government has decided to waive existing crop loan upto Rs one lakh borrowed by farmers from cooperative banks.

"I'm giving one more good news to our farmers; we have decided to waive existing crop loans up to Rs 1 lakh borrowed from the cooperative sector. I have earmarked Rs 10,700 crore for this," he said winding up the debate on the budget.

He said his government was committed to protecting the interest of farmers and 'save' them.

Despite mounting pressure from the Congress to roll back the hike in petrol and diesel prices, Kumaraswamy, who also holds the finance portfolio, stuck to his decision.

"We want source of income," he said while justifying his stand by quoting a similar statement made by Union Minister Arun Jaitley on the fuel price hike.

In the coalition government's maiden budget last week, Kumaraswamy had proposed increase in taxes on petrol and diesel by Rs 1.14 and Rs 1.12 per litre respectively as part of resource mobilisation efforts following the farm loan
Detailing the farm loan waiver announced in the budget, Kumaraswamy said "in four years period, in four instalments nationalised bank's loan waiver amount will be repaid, and during this year Rs Rs 6,500 crore will be repaid."
Rejecting opposition's allegation that the budget favoured only certain regions, especially southern parts of the state where JD(S) is strong, he said "my government is working for all round development of united Karnataka."
Responding to this, Kumaraswamy said "It is possible;I have had meetings with banks. I'm not playing gamehere... don't have doubts about it."