Karnataka budget: CM BS Yediyurappa may axe farm loan waiver, rename populist schemes

BS Yediyurappa (File Photo)
BENGALURU: The BJP government's budget on Thursday is likely to rationalize or scrap some of the populist schemes, including farm loan waiver, introduced by his predecessors HD Kumaraswamy and Siddaramaiah, besides renaming some popular among the beneficiaries.
The first to face the axe will be the farmers' loan waiver scheme. "Considering the state's poor financial condition, the budget will have no room for continuation of the waiver scheme," a government official said. Instead, chief minister BS Yediyurappa is likely to announce a Rs 1,500-crore scheme to incentivise the farm sector.
With lack of funds from the Centre and sluggish tax collection, apart from political considerations, Yediyurappa may sideline schemes like Badavara Bandhu (interest-free loan to roadside vendors), incentive for Israeli model of dry land cultivation and Raitha Belaku (capital assistance to farmers up to Rs 10,000 per hectare).
Since scrapping the hugely popular Anna Bhagya could raise the hackles, the CM may reduce the quantity of rice distributed under this scheme from 7kg to 5kg a month.
"Many schemes, including Anna Bhagya, are under the scanner," admitted food and civil supplies minister K Gopalaiah, saying rationalisation of rice distribution would save the department Rs 600 crore a year.
BSY likely to rename some schemes
Yediyurappa is said to be mulling over renaming certain popular schemes. For instance, Airavatha, a scheme that helps dalit youths own taxis and partner with app-based aggregators, may be renamed Ambari.
Former social welfare minister Priyank Kharge, who was instrumental in launching the scheme, said he wasn’t worried about the renaming exercise, but wanted the scheme to continue since it benefits underprivileged youths.
In housing sector too, the government may conflate existing schemes into one. “With six schemes, two of which are centrally sponsored, duplication and misuse of funds are rampant. Hence, we are proposing to merge them,” said housing minister V Somanna.
Ex-CM HD Kumaraswamy said: “I’ve no objection if Yediyurappa wants to leave his stamp on the budget. More worrying is the government’s conspiracy to divert funds meant for welfare of farmers and the poor in the guise of new schemes. It’s an effort to hide the poor financial condition of the government.”
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