Karnataka’s farm loan waiver likely to cost the exchequer Rs 250 billion

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The farm loan waiver announced by B S Yeddyurappa, the newly sworn-in chief minister of Karnataka, might end up costing the state exchequer Rs 250 billion, government officials told Business Standard. The modalities of the scheme will be worked out in the coming days.The state’s finance department has asked banks to provide data on outstanding crop loans according to the size of the loan and the date on which it was taken to determine the cut-off period. The loan waiver will be capped at Rs 100,000 per beneficiary, as mentioned in the Bharatiya Janata Party’s election …
Source: Business Standard