HD Kumaraswamy Calls For Austerity, Signals Mega Loan-Waiver For Farmers
The Chief Minister plans to announce a Rs 53,000 crore loan-waiver for the debt-ridden farmers of Karnataka.
Bengaluru, June 4: Karnataka Chief Minister HD Kumaraswamy has directed the state's bureaucracy to adhere to austerity measures. The order is being perceived as a signal to brace for a mega loan-waiver for farmers, which could amount to Rs 53,000 crore.
The CMO has asked the state's officials to cut down on all "unnecessary expenditure", including the procurement of new cars, refurbishing of offices and renovation of official quarters.
The austerity measures, analysts claim, may benefit in the short-run, but is likely to derail the economy in the long-term as infrastructure sector could be affected, claim analysts.
"This will affect the economy adversely and other sectors will suffer,” claims economist Abdul Aziz, who is also the chair professor at National Law School of India University.
The "complete loan-waiver", which Kumaraswamy as promised to implement in the state, is also predicted to adversely impact the budgetary allocation and state's fiscal condition.
The Karnataka CM, however, is firm on granting the sop to the state farmers. "If I can't implement the loan-waiver, I will not only quit the CM chair, but also retire from politics," Kumaraswamy had said, after meeting Prime Minister Narendra Modi on Wednesday.
Kumaraswamy's predecessor, BS Yeddyurappa, who was the CM for barely 48 hours, had announced farm loan-waiver upto Rs 1 lakh on the first day of assuming charge. The order, however, was stuck in logjam as he resigned from the chair after failing to prove his majority.
(The above story first appeared on LatestLY on Jun 04, 2018 09:45 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).