Uttar Pradesh Chief Minister Yogi Adityanath on Thursday said the burden of the Rs 35,000 crore plus loan waiver for farmers announced by the government will not be passed on to the people.
“We have made arrangements for the same and we will also cut short the unnecessary expenses” the Chief Minister said.
The waiver by the state government applies to loans taken by these farmers against seeds for wheat and paddy crops, besides pesticides and fertilisers.
In all, the amount which is being waived comes to a total of Rs 30,729 crore, Health Minister Siddharth Nath Singh had said. The waiver would apply to loan amounts of Rs 1 lakh.
Singh also said that there were around seven lakh farmers who defaulted on loans taken and now bore the non-performing asset tag. The government has also decided to write off all their loans, amounting to Rs 5,630 crore.
Singh noted that since the state was bound by the law on fiscal discipline which puts a condition to cap fiscal deficit to under 3 per cent of the GDP, the state would raise funds for the loan waiver through a ‘Kisan Relief Bond’.
Modalities of this bond are being worked out and it would be cleared during the forthcoming budget session of the state assembly, he added. The loan waiver would apply to all banks, including cooperative banks.