BJP govt waives Rs 36,359-crore loan for UP farmers

The BJP-led government in Uttar Pradesh took decision in its first cabinet meeting held on April 4 to waive off crop loans of up to Rs 1 lakh of small and marginal farmers in the state, a relief promised by the party before the assembly elections. In its poll manifesto BJP had promised loan waiver to marginal farmers. The BJP had said during the election the decision would be taken at the first meeting of the state cabinet.

About 21 million farmers will benefit from this decision of chief minister Yogi Adityanath’s cabinet during its first sitting. About 92.5% of the state’s farmers fall in the small and marginal categories.

Besides, the cabinet also decided to write off Rs 5,630 crore in non-performing assets (NPAs) of 700,000 farmers.
The twin waivers — among nine decisions the cabinet took — would together cost the government Rs 36,359 crore. The cash-strapped government would float farmer relief bonds, called Kisan Rahat Bond, to generated funds to implement the loan waiver. The cabinet took nine decisions on the occasion of Ram Navami.