Karnatka budget: CM Kumaraswamy waives off all farmer loans

Karnataka CM H D Kumaraswamy has announced a mega farm-loan waiver worth Rs 34,000 crore for the benefit of small and marginal farmers. This is part of the first budget presented by the Karnataka government. The loans were waived off for the benefit of farmers financially hit by drought. As an encouragement to non-defaulting farmers the government has decided to credit the repaid loan amount or Rs 25,000 (whichever is less) directly to the accounts. Kumaraswamy also announced provisions to allow farmers to avail new loans.