New Delhi, June 20, 2017

Finance Minister Arun Jaitley has ruled out any waiver of farm loan and said that the Centre will adhere to fiscal targets.

The remark came as Punjab became the third state after Uttar Pradesh and Maharashtra to announce waiver of loans given to farmers.

Replying to questions from reporters, Jaitley today said that the Centre is not considering any such plan. The government had in 2008 waived farm loans to the tune of Rs. 74,000 crore.

The Centre, he said, will adhere to all fiscal targets, including fiscal deficit.

He said he would not comment on the loan waivers by states and had already made his position clear last week.

On June 12, Jaitley had said the Centre will not fund any of the loan waivers by states and they will have to find their own funds for doing so.

“I have already made the position clear that states, which want to go in for these kind of schemes (farm loan waivers), will have to generate them from their own resources. Beyond that the central government has nothing more to say,” he said.

[The Hindu Business Line]