Govt hikes farm loan waiver to Rs 71,680 cr

New Delhi: The Government on Friday hiked the provisions for debt waiver for farmers by a hefty 20 per cent.

The debt waiver amount has been raised from Rs 60,000 crore to Rs 71,680 crore in a move that would enlarge the scope for relief for peasants.

The decision to increase the debt waiver amount, announced in the Union Budget for 2008-09, was taken at the meeting of the Cabinet presided over by Prime Minister Manmohan Singh.

Congress General Secretary Rahul Gandhi has been suggesting enlargement of the scheme to include more farmers.

Congress President Sonia Gandhi also had earlier hinted at more concession for farmers, post the Union Budget.

Finance Minister P Chidambaram had on February 29, announced a Rs 60,000-crore relief package for farmers, including complete waiver of loans given to small and marginal farmers.

Presenting his last Budget before the General Elections, Chidambaram announced waiver of Rs 50,000 crore worth of loans to small and marginal farmers and a settlement scheme for other farmers that would cost the exchequer another Rs 10,000 crore.

He had said that according to estimates, 3 crore marginal and small farmers would benefit from the Government's amnesty.

He also stated that the implementation of debt waiver and debt relief will be completed by June 30, 2008.