When it comes to overall loans (including informal sector), Uttar Pradesh remains on top with Rs 63,813 crore of the total farm loans. (Representational image)
Maharashtra is among the top five states in terms of availing farm loans from the formal sector, said the mid-term economic survey released on Friday. According to the survey, which has also tried to summarise farm indebtedness, Uttar Pradesh has the largest quantum of formal sector farm loans at Rs 39,284 crore. It is followed by Maharashtra at Rs 38,495 crore and Kerala at Rs 34,385 crore.
The three states put together account for almost one-third of the formal sector farm loans of Rs 3.25 lakh crore. However, for India as a whole, the total farm loans amount to about Rs 5.5 lakh crore, according to the survey.
When it comes to overall loans (including informal sector), Uttar Pradesh remains on top with Rs 63,813 crore of the total farm loans. However, states like Andhra Pradesh (Rs 57,529 crore), Rajasthan (Rs 59,255 crore) and Karnataka (Rs 53,447 crore) push Maharashtra down the pecking order.
The quantum of farm loans is important because some form of farm loan waiver has so far been announced by Uttar Pradesh, Karnataka, Maharashtra, Punjab, and Tamil Nadu. The mid-term survey says this will have a deflationary impact. Waivers also affect the state fiscal positions.
“Comparing limits with the BE (budget estimates) for 2017-18, only seven states have fiscal space exceeding 0.5 per cent of GSDP. The states with the most space in rupee terms are Maharashtra, Gujarat, West Bengal, Karnataka and Madhya Pradesh. In relative terms, Jharkhand also has ssconsiderable space, amounting to 0.7 percent of GSDP. States with no additional deficit capacity include Uttar Pradesh, Telangana, Rajasthan, Andhra Pradesh, and Odisha,” said the survey.