This is why farm loan waiver can add to fiscal woes of Maharashtra

This is why farm loan waiver can add to fiscal woes of Maharashtra

According to estimates, if farmers are included who are not marginalized, Rs million lakh will go towards exemption from the loan. The high-level ministerial committee thus attempting to formulate guidelines to exclude wealthy farmers.
“In 2008, for 12-13 thousand rupees, they were also giving up 82 lakh loans. Can you call this a farmer’s loan waiver then? This time, because we have less money, we want to extend the assistance only To those who are really affected and have a great need for help, “said Finance Minister Chandrakant Patil, who also heads the Ministerial Committee on the authorized loan exemption.
The state government is already facing huge debt and a budget deficit. Maharashtra has a debt of Rs 3 lakh of 85 billion rupees for the fiscal year 2016-17. A sum of Rs 25 billion is only paid as interest on debt.
By the end of next fiscal year, the figure is likely to cross 4 lakh crores.Presently the state has a budget deficit of Rs 5511 crore.
Rs 24,000 crore is needed to implement the seventh payment commission. After having cleared the LBT, an additional charge of Rs 7,000 crore has been in the state.
The recent decision of the Supreme Court to ban liquor stores and bars on the road was also added a burden of Rs 7 billion rupees in the state.
Even the experts gave an inch to the idea of ​​a loan waiver. According to the chairman of the Indian Chamber of Commerce and Chairman of the FirstRand Bank India, Deepak Prembarayen subsidies “are granted to farmers abroad, but for research and productivity increase in Indian grants and exemptions are granted by The political levels. ”
“These exemptions are not good for banks.This creates a hole in the balance sheets.It increases the NPA of the banks and does not benefit the farmers in the end.After those resignations, every decision maker believes he could stretch the NPA And occurs after every 2-3 years, “added Prembarayen.
With such a pathetic financial situation, and even the financial sector that raises doubts of where the money will come from? For Finance Minister Sudhir Mungantiwar, the task will not be difficult. “We are delighted to help farmers, our ‘Anna EAAA’ who gives us food,” said Mungantiwar.
“We will increase our growth by 14 percent after the GST and we will have 17,000 to 18 billion rupees outside this. Our non-tax income is 16 billion rupees, we will try to bring it to 25 billion rupees. In Maharashtra, we have a direct bank transfer system in which we will save a lot of money. If we put all that money into the non-banking sector, that will not be difficult for us, and we will be happy to provide such a waiver, “Mungantiwar said.
The authorized ministerial committee is likely to submit draft guidelines to the State Office for approval on Tuesday….

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