Yogi Adityanath first Cabinet meeting: Govt waives farm loans up to Rs 1 lakh in UP; will finances hold?

Shubham Ghosh
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Keeping promises made by the BJP in its manifesto ahead of this year's Assembly elections in Uttar Pradesh, the state's chief minister, Yogi Adityanath, on Tuesday (April 4) approved a waiver of farm loans up to Rs 1 lakh.

The key decision was taken at Adityanath's first Cabinet meeting held on Tuesday evening. According to the state government, the decision will cost the exchequer Rs 36,000 crore even as it will benefit 2.25 crore farmers.

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Prime Minister Narendra Modi himself had promised during the poll campaign that the BJP would waive the loan if it was elected to power. The small and marginalised farmers. Most of whom were unable to repay loans worth over Rs 60,000 crore owing to crop losses because of natural calamities, were kept in mind while making the decision and one would feel that through this, the BJP would hope to win the support of the agricultural class in the 2019 Lok Sabha election as well. The government has also decided to issue 'Kisan Rahat Bond' to raise money to balance the fiscal deficit.

However, the Centre has left the financial burden of the move to be borne by the state government or otherwise it would have to deal with similar demands from other states as well.

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At the meeting, it was also decided that the anti-Romeo squads that have been deployed in the state to ensure security of women did not misuse their power by harassing people. The squads would be monitored, the government said. 

Highlights of CM Adityanath's first Cabinet meeting:

  • Loans worth Rs 30,729 crore of over 2.2 crore small and marginalised farmers, who had taken crop loan up to Rs 1 lakh, have been waived. This apart, Rs 5630 crore of NPA of 7 lakh farmers will also be written off. The government will thus borne upto Rs 36,359 crore loan.
  • To balance the fiscal deficit caused by the waiver, the UP govt will introduce Kisan Rahat Bond to raise money.
  • No illegal slaughterhouse will be allowed in the state. The govt will follow the guidelines of the Supreme Court and National Green Tribunal.
  • A sports complex to be set up in Ghaziabad
  • A new industrial policy will be taken up to ensure that investors queue up for the state and the youth of the state do not migrate to other states for livelihood
  • A panel has been formed to look after the crisis being faced by the potato farmers. Another committee will look into ways to benefit the potato farmers.
  • Monitoring of anti-Romeo squads

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