Karnataka Budget: Kumaraswamy Waives Farm Loan Upto Rs 2 Lakh


Bengaluru: Karnataka Chief Minister H D Kumaraswamy announced a number of populist schemes including huge farm loan waivers to the tune of Rs 2 lakh while presenting his maiden budget on Thursday 11:30 AM in Vidhana Soudha in Bengaluru. Kumaraswamy, who is also the finance minister, is expected to present a populist budget aimed at the rural masses.

During the election campaign, the Kumaraswamy-led JD(S) had promised to waive farm loans borrowed both from cooperative and nationalised banks within 24 hours of coming to power.

However, financial and economic experts and several government officials have expressed concern over the likely impact of loan waiver on the state’s finances.

It will be interesting to see how Kumaraswamy, who has in the past claimed that he is not an expert on the economy, will strike a balance between loan waiver, flagship schemes of the previous government, new schemes or programmes if any, as also infrastructure needs of the state.

Here are the LIVE updates of the Karnataka Budget 2018:

Karnataka CM HD Kumaraswamy propose to increase the rate of tax on petrol from the present 30% to 32% and diesel from 19% to 21%, so petrol price will be increased by Rs.1.14/ltr and diesel by Rs 1.12/ltr.

The government will grant Rs 150 crore to introduce the Israel model dryland irrigation in Kolar, Chitradurga, Koppal and Gaddag. Hike in petrol prices by Rs 1.14 and Rs 1.12 in diesel proposed.

42 continuous ambient air quality monitoring stations to come up with Rs 96 crore investment under district mineral fund

A special package of Rs 150 crore has been provided for repairs of government primary, high school and pu colleges buildings

HD Kumaraswamy while presenting the budget in Vidhana Soudha decided to limit the loan amount to Rs 2 lakhs. Due to this crop loan waiver scheme, farmers will get the benefit of Rs 34,000 crore.

Loan waiver will be applicable only for those farmers whose borrowings are less than Rs 2 lakh.

He added that, he have decided to waive all defaulted crop loans of farmers up to 31 Dec 2017 in the first stage. Farmers who repaid the loan within time,as an encouragement to the non defaulting farmers, I have decided to credit the repaid loan amount or Rs 25,000 whichever is less.

To facilitate the farmers to avail new loans action will be taken by the govt to issue clearance certificate by waiving the arrears form the defaulting account. For this purpose, Rs 6,500 crore is earmarked in 2018-19 budget, says Karnataka CM HD Kumaraswamy while presenting the budget.

Kumaraswamy announces farm loans upto Rs 2 lakh waived. He also proposed 4 per cent tax hike on liquor in the budget. Excise duty increased to generate funds for farm loan waiver. Karnataka Chief Minister HD Kumaraswamy presents the government’s first budget at Vidhana Soudha. “It is a new experience for me as a finance minister. I have taken up this as a challenge to give a surplus budget,” said Karnataka CM H D Kumaraswamy before presenting the government’s first budget.

Budget copies being taken inside the Karnataka Legislative Assembly. Chief Minister HD Kumaraswamy will present the government’s first budget.

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