Details about farm waiver on Fri: Chidambaram

Finance Minister P Chidambaram said he will inform Parliament on Friday how the government would compensate banks for the losses incurred on account of the farm loan waiver of Rs 60,000 crore.

"I'll explain about the resources during my reply to the discussion on the budget on Friday," Chidambaram said here on Sunday night while addressing Congress workers.

He added: "Another bonanza awaits people when the sixth Pay Commission submits its report by the end of this month."

On doubts raised by the opposition, led by BJP, and some economists about the ability of the government to compensate the banks saying the loan waiver may lead to the collapse of some co-operative banks, he said the government would compensate the banks. "Will Prime Minister Manmohan Singh and I appear for an examination without
proper preparations?" he asked.