New Delhi, June 22, 2017: Union Minister for Urban Development M Venkaiah Naidu on Thursday said that loan waiver has become fashion now and should be waived in extreme situations only.
Speaking at the launch of India’s largest municipal bond programme in Mumbai, Naidu said “Loan waiver has become fashion now. It should be waived but in extreme situations only. It’s not a final solution. You have to take care of systems. The farmers should be taken care in distress.”
On Wednesday, Karnataka CM Siddaramaiah announced that the state will waive off farm loans up to Rs 50,000 which were taken from co-operative banks till June 20, costing the state exchequer Rs 8,165 crore.
Responding to Naidu’s statement, CPI-M leader Sitaram Yechury said “Very unfortunate statement by the honourable minister, today he is saying that loan waiver has become fashionable, tomorrow he will say that farmer suicide has also become a fashion.”
Earlier, the Yogi Adityanath-led government in Uttar Pradesh had also approved waiver of farm loans up to Rs 1 lakh, fulfilling a major election promise made by the BJP. According to state government, the decision will benefit 2.25 crore farmers and is likely to cost the state exchequer Rs 36,000 crore.
However, the Centre has ruled out any waiver of farm loan and said it will adhere to fiscal targets. On Tuesday, Finance Minister Arun Jaitley said the Centre is not considering any such plan.