Karnataka Chief Minister HD Kumaraswamy, who also holds finance portfolio, has announced Rs 34,000 crore farm loan waiver as promised in his party manifesto but with riders. Presenting his maiden Budget on Thursday, he announced farm loan waiver to the tune of Rs 2 lakh to each farmer.
In view of the burden that the waiver scheme would put on the State exchequer, Kumaraswamy announced proposals to mop up additional resources, including increase in the rate of tax on petrol by Rs 1.14 per litre and diesel by Rs 1.12 per litre. He also proposed a hike in the additional excise duty on Indian-made liquor by 4 per cent across the board on all 18 slabs.
He said, “I have decided to limit the loan amount to Rs 2 lakh. Due to this crop loan waiver scheme, farmers will get the benefit of Rs 34,000 crore.”