Fadnavis declines to commit on crop loan waiver

Says Rs 30,500 cr would be needed, to seek Centre's help for farmers

Maharashtra government, which is struggling to maintain fiscal discipline amidst rising revenue deficit, will immediately need a whopping Rs 30,500 crore for crop loan waiver. However, the provisioning for the same will not only cause financial disruption but the government will not find enough funds for capital expenditure. In his statement in the state assembly, which could not function for a week due to rising demand for crop loan waiver, Chief Minister Devendra Fadnavis on Thursday said the government was not against it but declined to give any firm commitment in this regard.

However, Fadnavis asked whether Opposition will give a guarantee that there won't be farmers suicides after the crop loan waiver. He said the government wants to provide relief to the farmers and not to the banks. Fadnavis said after the UPA government's crop loan waiver in 2009 more than 16,000 farmers have committed suicides across the country.

Amidst slogan shouting by Opposition, who was joined by the ruling Bharatiya Janata Party's partner Shiv Sena, Fadnavis informed that 1,36,000 farmers, who hold accounts, have been provided, as on date, loans worth Rs 1,14,000 crore. Of which Rs 31.57 lakh crore is already overdue. The government will need Rs 30,500 crore for waiver.

However, a combative Fadnavis alleged that the Opposition was politicising the issue and weeping crocodile tears in order to cover up scams in the banking sector. He further claimed that the Opposition was raking up the crop loan waiver as it was unable to digest their rout in the recently held elections to the 25 zilla parishads, 10 municipal corporations and 281 panchayat samitis in which BJP came on top.

The Chief Minister cited that during the Congress-NCP rule between 1999 and 2014 the government expenditure towards salary, wages and pensions has shot up to Rs 1.32 lakh crore. The capital expenditure has been of the order of Rs 25,000 crore which has now increased to Rs 31,000 crore. "However, the state government is of the view that the farmers should benefit from the capital expenditure. Of the Rs 31,000 crore, as high as Rs 19,000 crore has been spent on the agriculture alone which is a record. Besides, the government has incurred Rs 11,000 crore on crop insurance, aid to farmers affected due to natural calamities and expenditure under farm improvement scheme," he noted.

Fadnavis assured that the government will soon seek the Centre's help and informed that he will lead a delegation to New Delhi.

However, Fadnavis' statement did not satisfy agitated opposition members who kept on shouting slogans which led to the adjournment of House twice and later for the day. The Leader of Opposition in the state Assembly Radhakrishna Vikhe-Patil alleged the Chief Minister's statement was misleading and warned that Opposition will stall the proceedings till the government announces crop loan waiver.

Shiv Sena legislator Anil Kadam said his party will continue to press for crop loan waiver and asked the government to make announcement before the presentation of annual Budget on March 18. Shiv Sena legislators entered the well and demanded crop loan waiver.