Mumbai: In a big relief to the farmers in the state, the Maharashtra Cabinet on Saturday announced to waive off a farm loan package of Rs 34,000 crore.
The state Cabinet meeting chaired by Chief Minister Devendra Fadnavis finalised the farm loan waiver package today.
In a press conference CM Fadnavis said, “Maharashtra government has decided loan waiver of Rs 34,000 crores. We are waiving loans upto Rs. 1.5 lakhs completely,”
“The scheme will benefit 89 lakh farmers, making 40 lakh debt-free,” he said.
“We are aware that the burden will fall on us. We will cut our expenses. All the ministers and MLAs will give their one month salary to support the farm loan waiver,” he added further.
Earlier this month, Fadnavis had agreed to forgive all loans by farmers who in turn ended an 11-day strike that had sent prices of vegetables and produce sharply higher.
Maharashtra’s public debt is set to cross 4 lakh crore by the next March and will up spending more than 31,000 crores just to pay interest on its debt.
Besides Maharashtra, several other state governments had announced large and small loan waivers for farmers.
In April, the Yogi Adityanath government announced a 36,000 crore farm loan waiver in Uttar Pradesh that it had promised in the run-up to the elections.