The state finance ministry is feeling the heat of the Maharashtra government’s decision to grant a ‘criteria-based’ loan waiver to all farmers on Sunday.
Sources in the state finance ministry said that, in order to cope with the loan waiver, the state government has to reduce expenditure on infrastructure projects by almost 20 per cent.
The state’s finance, cooperative and agriculture departments have started preparations in order to implement the loan waiver. However, the state’s treasury — which is already bleeding. According to the cooperative ministry’s data, 1,06,40,000 farmers with small land holding in the state who have taken loans from various banks, including a few private ones, are eligible for the ‘criteria-based loan waiver for all.’ Out of these, 34 lakh failed to repay their loans since 2011-12. Finance ministry sources feel that the loan waiver for the 34 lakh farmers could saddle the exchequer with a debt of over Rs 25,000 crore. State finance minister Sudhir Mungantiwar told The Asian Age, “We will raise the amount even if the Centre does not give us money. I am confident that the people of Maharashtra will help find a way in such a situation.”
