The Maharashtra government could not keep its promise of waiving off loans of farmers taken from moneylenders. After sanctioning Rs 171.3 crore in the Budget 2015-16, it has distributed only Rs 36 crore and fear it will lose the remaining fund as the new budget for the year 2016-17 is in the offing. At the same time, the cooperative commissioner has demanded Rs 1,500 crore more to waive off the loan from moneylenders, but the proposal is still under consideration.
The government had announced waiving off the loans taken from licenced moneylenders during the December 2014 Assembly session also sanctioned Rs 171.3 crore in the subsequent budget presented in March 2015. However, after completing a year, the cooperative department has disbursed only Rs 36 crore to the moneylenders. It will have to lose the remaining funds as the deadline to spend the funds will get over by mid-March.
“We will request the finance department to allow us to use the fund next year too, as there were some technical difficulties in spending the entire amount. Licenced moneylenders are restricted to give loans in particular areas approved by the government. But, we have found that moneylenders have given loans to farmers outside the restricted area. In such cases, we are finding it difficult to waive off loans, as the auditors might question it. This technical difficulty can only be resolved by amending the existing law,” cooperative minister Chandrakant Patil said.
The cooperative commissioner has sent a fresh proposal demanding Rs 1,500 crore more to waive off loans of farmers. However, with the earlier funds unspent, the government has put the fresh proposal on the back burner. But, Mr Patil said he was unaware of any such proposal and said the department will not require additional funds for the loan waiver.
The loan waiver to farmers has remained a sensitive issue in the state and the Opposition had opposed the loan waiver to private moneylenders. They had also alleged that it had benefited the moneylenders who were associated with the BJP.
