Wednesday 1 February 2023
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PoliticsIndiaRajasthan budget offers farm loan waiver of up to Rs 50,000

Rajasthan budget offers farm loan waiver of up to Rs 50,000

Jaipur: Rajasthan chief minister Vasundhara Raje today announced one-time of up to Rs 50,000 for small and marginal farmers in the state, which would cost Rs 8,000 crore to the exchequer.

Presenting the state budget in the Assembly, Raje also announced setting up a farmer relief commission where farmers can approach and present their side for getting relief on merit basis.

As Raje, who also holds finance portfolio, announced the waiver, opposition Congress members led by the leader of opposition Rameshwar Dudi created uproar in the house.

They said it was betrayal with farmers and the complete should be waived.

Raje informed the house that the decision of up to Rs 50,000 for small and marginal farmers will cost Rs 8,000 crore to the exchequer.

The chief minister also announced free travel for people above 80 years of and one attendee on the half fare in the state roadways buses.

Hike in honorarium to Anganwadi workers, underpass from the Ramniwas garden to Delhi road for a better traffic management, biogas plants in cow shelters were among other announcements.

waivers do provide some relief to farmers in such situations, but there are debates about the long-term effectiveness of the measure. Critics demand to make sustainable by reducing inefficiencies, increasing income, reducing costs and providing protection through insurance schemes. They point out that farm waivers are at best a temporary solution and entail a hazard — even those who can afford to pay may not, in the expectation of a waiver.

Such measures can erode credit discipline and may make banks wary of lending to farmers in the future. It also makes a sharp dent in the finances of the government that finances the write-off. But farmers can decide the fortunes of political parties, and politicians are wary of antagonising them.

PTI

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