Karnataka CM Basavaraj Bommai proposed to hike the interest-free loan for farmers to Rs 5 lakh from existing Rs 3 lakh while presenting the state budget 2023-24 on Friday. The proposed increment in the short-term farm loan will come into force from April 1, 2023.
Later while addressing the media, CM Bommai said the step will increase agricultural activities in the state. Thus farmers will avoid taking loans from the unorganised sector.
The increased loan amount will directly help more than 30 lakh farmers in the state and a total amount to the tune of Rs 25,000 crore is estimated to be disbursed. Moreover, the CM has also proposed an additional subsidy of Rs 10,000 under the Bhoo Siri scheme to the farmers holding Kisan Credit Cards.
The Rs 10,000 subsidy will be divided between the state government and National Bank for Agriculture and Rural Development (NABARD). Rs 2,500 will be given by the Karnataka government while Rs 7500 will be added by NABARD. This will assist farmers to buy seeds, fertilisers, pesticides, and other materials required for farming.
Another scheme proposed in the state budget focused on the upliftment of women in the agricultural sector. A sum of Rs 500 will be given by the state government to all the landless women farmers in the state under Shram Shakti Yojana through direct bank transfer. However, the opposition government has something to say about the Karnataka government’s surplus budget.
On the interest-free loan of up to Rs 5 lakh, an opposition leader said that the move is unlikely to be of much help, as only about 10-15% of farmers avail of the Rs 3 lakh loan.
Speaking to the media after the budget presentation Sidagouda Modagi, state president, of Bharatiya Krishika Samaja said, “Only influential farmers take a loan of Rs 3 lakh while the average farmer struggles to get a loan of even Rs 50,000,”. He suggested that the government should disburse more loans to farmers.
The entire budgetary allotment for agriculture and related industries has been increased from Rs 33,700 crore in the current fiscal to Rs 39,000 in the state budget 2023-24. Of this, Rs 25,000 crore is set aside for irrigation projects, of which Rs 5,000 crore will go towards the Upper Krishna Project Phase-3 work and Rs 1,000 crore will go towards the Kalasa-Banduri Nala Diversion Project, which will use the state’s portion of the Mahadayi River’s 3.9 tmc of water.
Interestingly, the identical sum was allotted the previous year’s budget but it went unused because the project hadn’t yet gotten off the ground. Moreover, CM Bommai stated that the first stage of the Yettinahole drinking water project is nearly finished and that water will be supplied this year.
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