Bengaluru: No question of going back on loan waiver promise, says Kumaraswamy


From Our Special Correspondent
Daijiworld Media Network - Bengaluru

Bengaluru, Jun 19: Exuding happiness at the positive outcome of his two-day stay in Delhi, Karnataka Chief Minister HD Kumaraswamy, upon his return to the City in the morning, said the plan on implementing the pre-poll promise of loan waiver to the farmers will be spelt out in the JD(S)-Congress coalition government’s first budget to be presented in the first or second week of July.

"We will take a decision on convening the joint session of the State Legislature shortly," he said in a meet the press programme organised by the Bengaluru Press Club and the Reporters Guild on Tuesday, adding: "The session was likely to be convened either in next month’s first or second week."

Kumaraswamy said he had requested Prime Minister Narendra Modi to share at least half the burden of writing off the huge farm loans from the cooperative sector and also from the nationalised banks all over the country in view of the acute distress in the farm sector.

Referring to Modi government’s plans to bail out the defaulting big borrowers from the corporate sector by floating Rs 2 lakh crore worth of bonds, the Chief Minister demanded that at least 25 % of amount raised by the bonds to rescue the farmers in all States.

"I know loan waiver is not a panacea for the problems of the farmers nor will it help in rescuing the agriculture sector. I am also fully aware of the fact that writing off farm loans will not put an end to the suicides by farmers or remedy the agriculture sector," he said making it clear that the immediate problems of the farmers will be solved and enable them to continue with their cultivation.

The Chief Minister said the farmers required long-term solutions to solve the problems of the agriculture sector, timely guidance, supply of seeds, fertilisers and other inputs in time, better marketing facilities and scientifically determined prices for the farm produce.

He explained that his party’s promise of writing off all farm loans within 24 hours of assuming power if the JD(S) secured a clear majority. "But this has not happened. I am now heading a coalition government with Congress as a major partner. I cannot take any unilateral decisions and the government must examine all aspects before taking a decision," he said.


"Not trying to wriggle out"

"I am not trying to wriggle out of the promise nor giving lame excuses. I am just stating the ground realities. I am still committed to keeping my promise and helping the farmers," he said disclosing that he will be convening a meeting of the heads of all nationalised banks in the State in a couple of days to get their suggestions.

"We have to function within the parameters of the Fiscal Responsibility Act and the government cannot exceed the Fiscal Deficit target. At the same time, the farm loan waiver should not become a burden on other sections of the people," he asserted.

Asked about his plans for helping the farmers in northern Karnataka by expediting the Upper Krishna Irrigation Project works or solving the Mahadayi water sharing issue, the Chief Minister said the government will not ignore the people of North Karnataka. In any case, the major beneficiaries of the loan waiver will be farmers from Northern Karnataka, he said.

Streamlining the administration, tightening the controls, plugging leakages, checking corruption and carrying forward the developmental agenda were part of the government’s priorities. The performance of the government in the last one month and the actions of different ministers has proved that the government is serious about its business and duties, he said.

On Mahadayi issue, Kumaraswamy said he held a detailed discussion with Union Water Resources Minister Nitin Gadkari and have been told the tribunal’s verdict is expected in July. Until the Tribunal submits its report and gives the verdict, nobody can do anything. The government is alive to the problems of the people, he said.


Serious doubts of Cauvery Management Board

Kumaraswamy said he had also discussed the Cauvery issue with the Prime Minister and expressed Karnataka’s concerns over the "unscientific aspects" involved the Cauvery Management Board, especially the framework of the scheme envisaged in the Board.

Though the Centre has issued a gazette notification on the constitution of the Cauvery Management Board, the stipulations in the Inter-State Water Disputes Act on tabling it in Parliament and discussion in both houses within six months has not been fulfilled.

"I have been asked to forward names of the two persons to be members of the Cauvery Management Board. I have directed the officials not to send any names as we need to sort out the grievances first," he said making it clear that he was not questioning the Supreme Court’s verdict but merely pointing out certain drawbacks and lapses. The inter-state dispute is about sharing of the Cauvery waters and with the Supreme Court’s final decision on allocation of waters, there was no logic in placing restrictions on Karnataka on utilising its share of waters or following the cropping pattern when similar conditions were not laid down for Tamil Nadu.


"Will stay as CM for full 5 years"

Kumaraswamy asserted that the coalition government would be stable and last the full five year term. "I have no doubts whatsoever on my government’s survival," he said explaining that his recent comment that nobody can destabilise his government till the 2019 lok sabha polls was made when some persons expressed misgivings.

To a question on former Chief Minister Siddaramaiah taking rest and treatment in Dharmashthala nature cure centre for a fortnight, Kumaraswamy said the chairman of the JD(S)-Congress Coordination Committee had a busy schedule during the last 3-4 months and it is necessary that he should recuperate and take of his health. "Nobody has asked him to take a break," he said.

On Siddaramaiah’s comment that the coalition government can at best come out with a supplementary budget and not a full-fledged budget, the Chief Minister said the suggestion must be taken as advice from a person who has presented a record 13 budgets. "I have discussed the issue with Congress leaders, including National Party President Rahul Gandhi. Further, it is a decision to be taken by the State Cabinet and cannot be discussed in public," he added.

 

  

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Comment on this article

  • mahesh, mangalore

    Wed, Jun 20 2018

    Loan waiver has never worked.
    2009- UPA gave 70000 crore Liam waiver.No ue.
    Many of the states are doing it including BJP run states.
    It's a disaster.
    No wonder ,centre has taken Thier hands of this.

    DisAgree Agree Reply Report Abuse

  • Vincent Rodrigues, Bengaluru/Katapadi

    Wed, Jun 20 2018

    Good gesture to help the needy and one who are in real problems

    DisAgree [1] Agree [1] Reply Report Abuse

  • Sunil Shetty, Mangalore/Mumbai

    Wed, Jun 20 2018

    Loan waivers will definitely help the farmers but I wouldn't say this is the best option. It needs to be analysed thoroughly and be given wavers only to the actual needy . Again state government should always keep their funds for these kinds of agricultural waivers .Promising waivers just for the sake of votes are not correct as finally its the citizens /tax payers money is used for their political popularities.

    DisAgree Agree [4] Reply Report Abuse

  • MN, Mangalore

    Wed, Jun 20 2018

    53,000 crores I guess. Who are the beneficiary ? Who will bear this burden. Aam Janata asking the question.
    The government must disclose the list of Beneficiary Gram Panchayat wise and the sum of loan amount planned to be waved-off to each of them, their economic status well before the money is disbursed. There should be provision to hear Public feedback/suggestion/complaint regarding the list of beneficiaries. After all its public money and to be spent judiciously, not a tool to garner votes by political party.
    The government must obtain guarantee from beneficiary that, they will not seek such benefit in future.

    DisAgree Agree [4] Reply Report Abuse

  • SMR, Karkala

    Wed, Jun 20 2018

    Two years after the Modi government introduced e-markets to bring about significant increases in product price realisation, these have hardly penetrated most states.
    For India, the case of rising income inequalities deserve special attention. India is the second-most unequal country in the world, with millionaires controlling 54% of the wealth. In Japan, the most equal country in the world, millionaires control only 22% of national wealth.
    A reason for the rise in income inequality has to do with large dependence on the low productive agriculture sector: more than 55% of the Indian population still earns their livelihood from agriculture. For example, in potato farming, the productivity of an Indian farmer is less than half of that of the US, Germany and the Netherlands. In case of rice, it is less than half of that of the US and Egypt, and for wheat, it is less than half of that of the UK and Egypt.

    The median annual wage of a farmer in India is around $290, which is barely two months’ minimum wage in Mumbai – the commercial capital of India. This has led to unequal income distribution in India with rural-urban wage gap at 45% in comparison to around 10% for China and Indonesia. Some 850 million people still live in rural India. The country has around 260 million people living in poverty and 80% of them live in the countryside.
    What is, however, necessary is speeding the spread of e-mandis, and other states reforming their Agricultural Produce Market Committee Act.
    Government should study research by Munshi Sulaiman, Research Director of Save the Children International, with Michael Murigi of the University of Sydney, analytically weighs up the costs and benefits of two poverty alleviation interventions: subsidised crop insurance for farmers, and graduation schemes for the ultra-poor.
    Whether It's Health or Crops, India Isn't Doing Social Insurance Right. What Small and Marginal What need is More E-Mandis & Make Crop Insurance Work for its farmers.
    JH

    DisAgree [1] Agree [3] Reply Report Abuse

  • Jossey Saldanha, Mangalore

    Tue, Jun 19 2018

    Kumaraswamy can do better than Rs. 1 & 2 loan waiver by FEKU 😁😁😁

    DisAgree [9] Agree [7] Reply Report Abuse

  • Truth teller, Karnataka

    Tue, Jun 19 2018

    But this loan waiver nonsense will put Karnataka backwards by a few years!. Populism should never override the health of state!

    DisAgree [4] Agree [9] Reply Report Abuse


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Title: Bengaluru: No question of going back on loan waiver promise, says Kumaraswamy



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