Karnataka budget: Government announces farm loan waivers worth Rs. 34,000cr
More than a month after taking charge, Karnataka CM HD Kumaraswamy has finally announced waivers for all defaulting farm loans up to December 31, 2017. Those who repaid them will be refunded the loan amount or Rs. 25,000, whichever is less, "as an encouragement." It will cost the government Rs. 34,000cr. This was announced at the new Congress-JD(S) coalition government's first budget presentation today.
Rs. 6,500cr to waive arrears of defaulters for fresh loans
Waivers will be applicable for loans of up to Rs. 2L, said Kumaraswamy, also the finance minister. To help farmers get fresh loans, "action will be taken by the government to issue clearance certificate by waiving arrears from defaulting accounts." Rs. 6,500cr has been earmarked for this. These measures, along with irrigation projects worth Rs. 1.25L crore, had been cleared by the coordination committee Sunday.
Farm loans came much later than promised
The farm loan issue had nearly threatened to break the new Congress-JDS government, with Kumaraswamy delaying the announcement and BJP slamming him over it. He had attributed the delay to coalition negotiations and need to study the state's finances, but had also asserted he'd resign if he couldn't provide waivers. Incidentally, Kumaraswamy had promised he would declare waivers within 24 hours if he won.
Other key announcements: Fuel, power, alcohol to get costlier
Kumaraswamy also announced a hike in petrol tax to 32% (Rs. 1.14/L) and diesel to 21% (Rs. 1.12/L). Hikes have been proposed in power tariff by 20p/unit, and in excise duty on Indian-made foreign liquor by 4%. Thirty-five new electrical sub-centers will be set up for enhanced transmission, and 75 will be upgraded. Rs. 150cr has been assigned for repairs of schools and colleges.
'Compete with China'
Under the state's new 'Compete with China' initiative, spare parts of products will be manufactured at the village-level, assembled at Taluk-level and sold in malls. Plug-and-play industrial sheds will be specially constructed. New factories will come up at Chitradurga (LED lights), Hassan (sanitary hardware) and Koppal (toys).
Schemes for pregnant women, job-seeking youths
Targeting particular sections, the government announced the Kayaka scheme for skill development. Under this, loans up to Rs. 5L will be given at 0% interest, and Rs. 5L-10L at 4%. For mothers, there'll be a "phased" increase in the current allowance of Rs. 6,000 under the Mathru Shree scheme. To facilitate small vendors, Badavara Bandhu mobile service will be launched in five cities.
Effluent treatment plant and air quality monitoring stations planned
In a boost to the fight against pollution, the government has allocated Rs. 50cr for rejuvenation of Bellandur Lake, from where water will be transported to rural areas through drip irrigation in PPP mode. A chemical effluent treatment plant will be established in Peenya at Rs. 10cr, and 42 continuous ambient air quality monitoring stations at Rs. 96cr.
