The state government is falling short of Rs 1,000 crore despite consistent efforts by the cooperatives department to arrange for the finances
Cash-strapped Rajasthan government is planning to avail a Rs 5,000 loan from bank to waive off farmer's loans that Chief Minister Vasundhara Raje had announced during her last Budget speech.
Raje on Wednesday asked the state cooperatives department to take a loan as the state is struggling to arrange for finances. The state government would provide guarantees for the loan, according to a report in The Times of India.
"The state government had assured us to give the money in instalments of Rs 2,000 crore and has already given us the first tranche. We will now take a loan of Rs 5,000 crore from banks, for which the state will give guarantees," Ajay Singh Kilak, state cooperatives minister, told the paper.
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Raje has promised a one-time loan wavier of up to Rs 50,000 for small and marginal farmers along with a budgetary provision of Rs 2,000 crore. The estimated cost however is far from adequate as the burden due to the loan waiver to over 29 lakh farmers is expected to be close to Rs 8,000 crore.
The state government is falling short of Rs 1,000 crore despite consistent efforts by the cooperatives department to arrange for the finances. The government did not receive a desired response from several banks it had approached, sources told the paper.
The government is under pressure to fulfil the promise as it is an election year. Giving in to that pressure, the Rajasthan government has already announced to hold camps on May 26 and 28 at gramin sewa sehakari samitis across the state to distribute loan-waiver certificates to select farmers.
The government thus have limited time to make all the financial arrangement.
“On Saturday, 17,000 farmers would be handed over the certificates while on Monday, 16,500 farmers would be given the same. From June 1 onwards, camps would be held at village level. It may prove difficult as the government is not prepared,” Kilak said.