Maha richer than UP, should waive off farm loans: Ex-CM Chavan

Maharashtra is richer than Uttar Pradesh and hence it should not shy away from writing off the loans of indebted farmers, Congress leader and former chief minister Prithviraj Chavan said today.
Speaking to reporters here, he said Maharashtra is in a better position to borrow the money required for a farm loan waiver from the Centre and service the debt.
"As per the 14th Finance Commission, gross state domestic product (GSDP) to liabilities ratio has to be around 23-24 per cent or less. Maharashtra's GSDP to liabilities ratio is 16.36 per cent and that of UP it's 30.30 per cent.

"It means even if the Maharashtra government borrows some Rs 30,000 crore from the Centre to waive off farmer loans, it can manage (its impact)," he said.
The ratio indicates a state's ability to pay back its debt.
UP's ratio is critical but still its government announced a debt waiver scheme. The BJP-led government in Maharashtra should also come out with a similar programme, the former Union Minister said.
"Maharashtra's GSDP is Rs 18.15 lakh crore. UP and Tamil Nadu have GSDP of Rs 12.37 lakh crore and Rs 13.69 lakh crore, respectively. It means Maharashtra is significantly richer than Uttar Pradesh. In such a case, Maharashtra can waive off the loans of its farmers," Chavan said.

Opposition parties are putting pressure, in and out of the state legislature, on the Devendra Fadnavis government to write off the loans of agriculturists.