Karnataka CM to Congress MLAs: Can't waive loans
Siddaramaiah says he would give it a thought only if the Union government agrees to share half the burden.
Bengaluru: Chief Minister Siddaramaiah on Wednesday rejected the demand of party legislators to waive farm loans, saying he would give it a thought only if the Union government agrees to share half the burden.
Speaking to Deccan Chronicle soon after a meeting of the legislature party, a senior leader said: “Although most legislators demanded that Mr Siddaramaiah consider waiving of farm loans as it will give the party an edge during next Assembly elections, Mr Siddaramaiah stated that the state government cannot afford to think of writing off farm loans to the tune of Rs 10,000 crore due to co-operative financial institutions, and Rs 25,000 crores worth farm loans of commercial banks. Mere waiver of farm loans will not yield results as the state’s efforts will benefit only a section of farmers. Therefore, it will be another futile exercise and result in an increase of the financial burden rather than help the party retain power in 2018,” the leader quoted the CM as telling legislators.
The leader added that PM Narendra Modi’s decision to demonetise will certainly bleed the state exchequer to the tune of Rs 8000 crores. Therefore, the state government would not be able to even contemplate waiver of farm loans.