Newly elected Karnataka Chief Minister H D Kumaraswamy, who is heading Janata Dal (Secular)-Congress coalition government, faces a big dilemma. Gearing up on his promise to waive off farm loans, former Prime Minister HD Deve Gowda’s son faces a tightrope walk after alliance partner Congress rejected the CM’s plan to announce waiver of farm loans from nationalised banks. The Congress is learnt to have told the CM that the move could cause a Rs 42,000-crore dent to the exchequer, something that the party could not allow, The Indian Express reported.
Complete waiver of all farm loans was a key issue during Karnataka election 2018. The JD(S) had promised complete waiver of all farm loans in the run-up to the May 12 elections. Even during the parleys between JD(S) and Congress top brass, farm loan waive featured as a key issue. Last year, after coming to power Yogi Adityanath-led BJP government in Uttar Pradesh had waived off the loans. Maharashtra CM Devendra Fadnavis also followed the same path. Kumaraswamy, who has stated that he was at ‘mercy’ of Congress over the farm loan waiver matter as well as the Cabinet formation, has been pondering over ways to successfully implement the grand exercise that involves a hefty sum.