Bangalore, July 5: Karnataka government has announced farm loan waiver of Rs 34,000 crore for the farmers in the state.

The loans of up to Rs 2 lakh per farmer will be waived, the budget document presented by the state Thursday said. Other than hike in cess on petrol and diesel, tax on liquor was also hiked by 400 basis points (bps).

While the Chief Minister HD Kumaraswamy provided loan relief to the farmers in the state, budget imposed a host of tax hikes on petrol, diesel, liquor and electricity. The budget has hiked tax rate on petrol from the existing 30 percent to 32 percent, hiking prices in the state by Rs 1.14 per litre. The tax rate on diesel has been hiked from the present 19 percent to 21 percent increasing its price by Rs 1.12 per litre.

Promising to continue the flagship programmes of the previous Congress government, Kumaraswamy told the legislators that the overall size of the budget would be Rs 2,13,734 crore.

“I propose to allocate Rs 150 crore for agriculture development based on the Israeli model. We will focus on agriculture as well as the services sector,” he said.

according to the state agriculture department’s estimates, of the 74 lakh farmers across the state, 25 lakh of them don’t take institutional loans but borrow from private sources, including moneylenders at a high interest rate and get caught into debt trap.

 

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