Farm loan waiver: States making announcements must generate funds from own resources, says Arun Jaitley

Farm loan waiver: Arun Jaitley's comment comes after Maharashtra CM Devendra Fadnavis announced a total loan waiver for farmers in the state.

By: Express Web Desk | New Delhi | Updated: June 12, 2017 2:16 pm
Arun Jaitley, Farm loan waiver, Maharashtra, Devendra Fadnavis Union minister Arun Jaitley. Express Photo by Prem Nath Pandey

Finance Minister Arun Jaitley on Monday said that states which were keen on farm loan waiver ‘must generate funds from their own resources’, reported news agency PTI. Jaitley’s comment comes after Maharashtra government announced a total loan waiver for farmers in the state.

According to estimates, the Maharashtra government will have to provide Rs 1.14 lakh crore to waive off entire loan burden of all 1.36 crore farmers in the state. However, total loan waiver of marginal and small farmers only amounts to Rs 30,000 crore.

Earlier, the newly-elected BJP government in Uttar Pradesh led by CM Yogi Adityanath had also made the announcement of  waiving off Rs 36,000-crore loan in its first cabinet meet on April 4. The decision led to similar demands in states like Maharashtra, Madhya Pradesh and Punjab.

Jaitley was meeting the heads of PSU banks to discuss the issue of Non-Performing Assets (NPAs). “NPA resolution, finances of banks, review of financial inclusion discussed with heads of public banks,” PTI quoted him as saying.

PSBs made stable operating profit of Rs 1.5 lakh crore in 2016-17, net profit at Rs 574 crore after provisioning. Speedy resolution for pending NPA cases required,” he added.

The meeting was the first after promulgation of the ordinance amending the Banking Regulation Act, 1949.

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  1. R
    rishi
    Jun 13, 2017 at 1:05 am
    NDa's Pursuit Of Principled Economics And Its Application......Mr. Jaitley is a genius and commands greater knowledge than that of all of economists and FMs of erstwhile congress regimes put together.....the reason lies in the honesty of intent and purpose which was missing earlier .
    Reply
    1. S
      Sujatha Selvam
      Jun 13, 2017 at 12:20 am
      This government already decided to put a lot of burden on common people, who are in fact honest tax paying citizens. Looters in corporate are enjoying government support and monetary concessions without any limit. Our life is becoming more miserable due to unnecessary taxes and government's extravaganzas. The middle cl families are affected more due to thoughtless policies of inexperience Finance Minister.
      Reply
      1. K
        krishnadas
        Jun 12, 2017 at 7:40 pm
        really appreciate Arun sahab's salvo !!!
        Reply
        1. I
          Ivan
          Jun 12, 2017 at 7:22 pm
          PM Modi floated loan waivers in UP to win the elections. Talk to him Mr Jaitley.
          Reply
          1. C
            Citizen
            Jun 12, 2017 at 6:24 pm
            India suffered more due to Bandhs/Strikes as a result of loss of ets private/public and precious livies. It also the victim of the vote bank politics and rulers to appease certain groups written off the loans of taxpayers money left and right with out any logic and reason. This cultivated a mind set in the loan takers that some day some one is going to write off their debt and a kind of looters raj. It is better if the center wakes up and bring in a law for the write off as well as fast recovery of the loans. They may consider waiver of interest if paid in a time bound fashion or they may consider a structured way of 10 ,20 write offs if paid in a year or two etc and for those who fail not to advance any loans for 5/10 years etc. That way lot of unnecessary things could be avoided. It is time for SC to take sumotu and issue guide lines/instructions to the rulers or some one should file a PIL. Jaihind
            Reply
            1. R
              rishi
              Jun 12, 2017 at 6:02 pm
              Loans should not be waived under any cir stances.......loan-repayment terms can be relaxed a little instead.....loan-repayment must remain the driving force for even ordinary farmers to work hard and earn sincerely....not like in the bygone crooked congresss-decades when huge-commisssions/cuts on these loans were given to congress-agents in abundance at every level for the sake of (mis)using public-money to fill congress coffers both at the time of extending loans and then at the time of waiving off the same in the cover of poor crop or whatever , the end losss being always borne by the common citizen whose hard-earned money went as taxes to be misused subsequently by wilful perpetration of such corruption in money-lending by the banks.
              Reply
              1. A
                Anurag Srivastava
                Jun 12, 2017 at 5:44 pm
                When the farmers get loans, the fist thing they do is to purchase some jewelry for his daughter/wife, then then use the money to solemnize marriages and finally they spend the money for his own enjoyment for the purpose to three Ws. . Then they want the loan to waived off and take fresh loans. This sort of behavior has to be stopped.
                Reply
                1. P
                  Pulak Mukherjee
                  Jun 12, 2017 at 4:44 pm
                  Whom are you kidding, Arun!
                  Reply
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