No new tax to offset loan waiver, Rajesh Agarwal

Lucknow: The Yogi Adityanath government in Uttar Pradesh does not plan to impose any fresh taxes or increase taxes in the new financial year to make up for the debt durden it will face after the farmer loan waiver scheme.

Talking to this correspondent, UP finance minister Rajesh Agarwal said that the government would manage from existing resources but would not add to the fiscal burden of the common man.

“People can rest assured that we are neither levying new taxes nor increasing the rate of existing taxes. We have prepared a roadmap for increasing revenue and new taxes are not a part of it though improved realisation definitely is”, he said on Thursday. The minister said that the government is focusing on bringing investment and the chief minister is already working overtime to create conducive atmosphere for investors. “Whether it is gearing up infrastructural development or improving the law and order situation, we are already started on it,” he said.

Referring to the Opposition charge that the BJP had gone back on its promise by capping the loan waiver at Rs 1 lakh, Mr Agarwal said that the government had also brought back those seven lakh farmers whose loan had gone into the NPA and who had been denied access to the banking system.

He said that various issues related to farmers’ loans — including the role of banks — would be taken care of when the legislation to this effect is brought in the first session of the state Assembly.

He said that the government was also making efforts to ensure that farmers do not fall back into the debt trap. “We are ensuring prompt payment of the farmer’s produce, clearance of cane arrears and better and prompt procurement facilities. All these steps, taken together, will help the farmers improve his financial situation,” he said.