The JDS-Congress coalition government in Karnataka on Friday expressed hope of repaying banks the entire Rs 45,000 crore worth of farm loans by the end of the current fiscal year despite stating last year that it would be spread over four years. Karnataka Chief Minister H D Kumaraswamy, who set aside Rs 1,2650 crore in the 2019-20 budget for paying banks for loans availed by farmers, said the government was confident of repaying the debt within the current fiscal itself.
“We feel we can pay back all the loans this year itself, though this has not been estimated in the budget since we are still working out the numbers,’’ Kumaraswamy said after presenting a budget focussed heavily on agriculture, irrigation and social sectors.
“Under the loan waiver scheme, Rs 5,450 crore has been released so far for about 12 lakh loan accounts of commercial banks. Out of this, crop loan amount of Rs1,027 crore for 2 lakh loan accounts of co-operative banks and Rs 843 crore for 1.9 lakh loan accounts of commercial banks has been released,’’ said Kumaraswamy.
“In the 2019-20, a budget provision of Rs 6,500 crore for commercial bank crop loans and Rs 6,150 crore for co-operative bank crop loans has been made. The co-operative loan waiver process is scheduled to be completed by June 2019. It is expected that the commercial bank loan waiver will also be completed during the financial year 2019-20,’’ the CM said.
The 2019-20 budget of the coalition has projected total receipts of Rs 2,30,738 crore with revenue receipts of Rs 1,81,863 crore. The expenditure is estimated at Rs 2,34,153 crore including revenue expenditure of Rs 1,81,605 crore. “The revenue surplus is estimated to be Rs 258 crore. Fiscal deficit is expected to be Rs 42,051 crore, which is 2.65 per cent of GSDP. Total liabilities at Rs 3,27,209 crore at the end of 2019-20 are estimated to be 20.60 per cent of GSDP. This is within the limit of 25 per cent for 2019-20 mandated in Karnataka Fiscal Responsibility Act,’’ Kumaraswamy said.