Karnataka Chief Minister H D Kumaraswamy on Thursday waived farm loans totalling Rs 34,000 crore, giving relief to distressed farmers across the state. "I propose to waive farm loans totalling Rs 34,000 crore, with Rs 2 lakh per farmer family," Chief Minister H.D. Kumaraswamy announced in the Assembly while presenting his maiden state budget for fiscal 2018-19."All crop loans defaulted by farmers to December 31, 2017 are waived in the first stage. Only loans borrowed from district cooperative banks and state cooperatives are waived in the first stage." The budget has also proposed to allot Rs 6,500 crore to enable farmers avail new loans after they submit a clearance certificate from the department concerned that their loan arrears have been waived."All crop loans defaulted up to December 2017 are waived in the first stage. Farmers who repaid loans within the stipulated time will be entitled to fresh credit up to Rs 25,000 or repaid amount, whichever is less," the Chief Minister said. The budget, however, proposes to tax people by increasing petrol price by Rs 1.14 per litre and diesel Rs 1.12 per litre.
Quantity of rice provided by the government for families has been reduced from 7 kg to 5 kg.
Karnataka Budget Live Updates: Kumaraswamy announces Kayaka scheme, under which loans up to Rs 5 lakh will be given at 0 per cent interest rate. Loans from Rs 5 to 10 lakh will be given at 4 per cent interest rate under the scheme. The decision is taken to enhance skills and entrepreneurship quality.
Karnataka Budget Live Updates: Considering the popularity of Indira Canteens in Bengaluru, action has been taken to open 247 Indira Canteens in all taluka and district headquarters of the state at an expenditure of Rs 211 crores, says H D Kumaraswamy.
Karnataka Budget Live Updates: I propose to increase the rate of tax on petrol from the present 30 per cent to 32 per cent and diesel from 19 per cent to 21 per cent, so petrol price will be increased by Rs 1.14 per litre and diesel by Rs 1.12 per litre: H D Kumaraswamy
Karnataka Budget Live Updates: I have decided to limit the loan amount to Rs 2 lakhs. Due to this crop loan waiver scheme, farmers will get the benefit of Rs 34,000 crore, says CM Kumaraswamy.
Karnataka Budget Live Updates: Petrol price is hiked by Rs 1.14 and diesel by Rs 1.12 by Chief Minister H D Kumaraswamy.
Bengaluru, July 5: Karnataka Chief Minister H D Kumaraswamy will present the first budget of the JD(S)-Congress coalition government in Vidhana Soudha today. Kumaraswamy will present the Karnataka Budget 2018 and deliver a speech in the Assembly at 11:30 am. Catch live updates on Karnataka budget and speech of Kumaraswamy here. Watch Live Streaming of Karnataka Budget 2018 Presentation From Vidhana Soudha on TV9 in Kannada here.
Though Congress leader and former Chief Minister Siddaramaiah told H D Kumaraswamy to present a Supplementary Budget since he had presented the Budget for this fiscal on February 16, the Chief Minister managed to secure Congress president Rahul Gandhi's nod to present the full Budget as the head of the coalition government.
Karnataka Budget is likely to include details of the much-anticipated loan waiver for the distressed farmers reeling under crop losses. Earlier, the state government conducted a survey of agriculture borrowers with details of loans availed from which institutions, including cooperatives, regional and state-run banks. The previous waiver cost the state exchequer Rs 8,165 crore in fiscal 2017-18.
Ahead of the Budget presentation, opposition BJP leader B S Yeddyurappa sought a White Paper on the state's finances, alleging that the government is yet to clear loans and bills amounting to Rs 2.38-lakh crore. "The coalition government should first present a White Paper on the state's finances, which are under stress due to a mismatch between revenue collection and expenditure," Yeddyurappa told reporters.
JD(S) leader Kumaraswamy formed the government in coalition with the Congress after Assembly polls in the state threw a fractured mandate in May. The BJP emerged as the largest party, with 104 seats, but failed to win a majority. Yeddyurappa staked claim to form the government and became the chief minister.
However, he failed to muster enough support for the trust vote and later resigned after giving an emotional speech. On 23 May 2018, Kumaraswamy took oath as the Chief Minister of Karnataka, along with G. Parameshwara as his deputy.