Hyderabad: The AP government is considering various options to mobilise funds to repay banks.
“So far, no government has taken such a decision for the benefit of farmers,” said Mr Naidu. He added that the Kotaiah Committee, which studied the loan waiver issue, had recommended waiving Rs 1 lakh per family. However, the government had decided to waive Rs 1.5 lakh for each family.
He also said that the government would pay Rs 1.5 lakh to farmers who had repaid their loans. He added that so far, governments had implemented loan waiver schemes only for defaulters, but the TD government had decided to extend the benefit to all farmers including those who had paid the loans.
The CM said that the government had taken March 31, 2014, as the cut off date to waive the farm loans. He said 96.27 per cent farmers would benefit fully and the remaining would partially benefit from the government’s decision to waive Rs 1.5 lakh farm loans.
Mr Naidu added that the government needed Rs 37,900 crore to waive the loans. According to the Fiscal Responsibility and Budget Management (FRBM) Act, the state government is eligible to borrow up to Rs 25,000 crore. Apart for the farm loans, the government will need Rs 7,600 crore for the Dwcra loans and Rs 600 crore for other loans.
