Maharashtra CM Fadnavis Calls On Centre To Share The Burden Of Waiving Off Farm Loans
Fadnavis was in New Delhi to discuss the farm loan waiver issue with the Centre.
Pitching for an alternative mechanism to give debt waivers to distressed farmers in Maharashtra, Chief Minister Devendra Fadnavis on Friday called on the Centre to share the state’s burden, should such a waiver be granted.
Fadnavis, who was in New Delhi to meet Finance Minister Arun Jaitley and Agriculture Minister Radha Mohan Singh to discuss the farm loan waiver issue, told reporters that he has requested the central government to design a scheme through which the debt of 31,000 farmers can be waived off.
Around 1.8 crore farmers in the state had taken Rs 1.05 lakh crore worth of loans. Of these, 31,000 farmers have loans overdue amounting to Rs 30,500 crore.
“...The government of Maharashtra would participate in the scheme as per the fiscal space of the state,” he said, adding that if the debt of these farmers is not serviced, they will be out of institutional credit system.
Union Finance Minister Arun Jaitley has assured that the central government would consider the state's demands, and would work on designing such a scheme, Fadnavis said.
There has been a logjam in Maharashtra state Assembly between the ruling Bhartiya Janta Party (BJP) and its ally Shiv Sena for more than 10 days over waiving off farm loan dues. While Shiv Sena is seeking a complete waiver, the BJP is looking for ways in which it could take the Centre's assistance to give such a waiver.
According to an estimate prepared by the cooperation department, the burden of such a waiver on the state exchequer will amount to Rs 22,000 crore.
The state is presenting its Budget on Saturday.