In an interview to ABP, the deputy chief minister of Uttar Pradesh said that a decision on farm loan waivers would be taken soon. He was speaking with regard to loan waiver of small and marginal farmers. The Uttar Pradesh government is mulling various options, including raising loan to meet additional burden on the exchequer, to fulfill BJP’s commitment to waive debts of small and marginal farmers.
A finance department spokesman on Tuesday said that Finance Minister Rajesh Agarwal has already started deliberations with senior officials of his department for fulfilling this promise at the earliest. BJP in its Lok Kalyan Sankalp Patra (manifesto) had promised to waive loans of small and marginal farmers. Even Prime Minister, Narendra Modi in his election speeches had said that writing off the farmers’ loans would be among the foremost tasks of the party’s government.
There are some 2.30 crore farmers in the state of whom 2.15 crore are small and marginal. They had suffered losses due to natural calamities in the recent past and were unable to repay their loans. The state is mulling options as to how to compensate the banks for their loss in case the loans of small and marginal farmers are waived off. For bearing the burden the state government will have to either look for a grant from the centre or raise debt on its own.