2018
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rs.9, 508.61 crore
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Rs.9, 548.61 crore
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Rs.9, 348.61 crore
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Rs.9, 448.61 crore
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Detailed explanation-1: -Earlier this month the cabinet had given its nod to waiving Rs 94.48 billion existing farm loans in respect of cooperative banks, and had issued a GO in this regard. The state government also announced a debt relief to landless agricultural labourers, small farmers and those from weaker sections, as one-time relief.
Detailed explanation-2: -The first nationwide farm-loan waiver in independent India was implemented in 1990 by the VP Singh-led government. It cost the exchequer Rs 10, 000 crore. In 2008, the Agricultural Debt Waiver and Debt Relief Scheme, implemented by the UPA government, involved an outgo of Rs 71, 680 crore.
Detailed explanation-3: -Even though, farm loan waivers are given to reduce the distress among farmers, the loan waivers can also have a negative impact on the credit flow because it creates distortions in the credit market since repeated waivers encourage default among the farmers. It also increases the NPAs (Non-Performing Assets) of banks.