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Reddy questions Naidu`s promise of farm loan waiver

Last Updated: Friday, March 1, 2013 - 23:32

Hyderabad: Andhra Pradesh Chief Minister N Kiran Kumar Reddy on Friday questioned the TDP chief N Chandrababu Naidu`s promise of a farm loan waiver if TDP came to power in AP and said such a move was not feasible.
"Let him (Naidu) explain how he will do it. Which existing schemes will he disband? How will he pay salaries to government employees? I will ask him in the assembly," Kiran told reporters here this evening.

He pointed out that the state government was spending Rs 28,000 crore on welfare programmes and another Rs 36,000 crore on development works.

"The current outstanding of farm loans is about Rs 1.16 lakh crore and another Rs 52,000 crore will be added this year. Besides, he (Naidu) is also promising to waive loans given to women self-help groups, which amounts to another Rs 50,000 crore. How can he do that?" the CM added.

When the Centre announced a loan waiver scheme for farmers in 2008, the total outstanding was Rs 65,000 crore. Now, the total amount is around Rs 10 lakh crore, he said.

"You can only deceive those who trust you. Nobody is going to trust Chandrababu," the Chief Minister quipped.

"I have no idea about any proposal (for loan waiver). But the Centre has the capacity to do it since its budget is huge. Individual states cannot do it," he said in the backdrop of Naidu`s promise.

Commending the union budget as "very good", the Chief Minister said that it will help progressive states like AP.

"The budget gives a big boost to the agriculture sector with the proposed lending pegged at Rs 7 lakh crore. Rural development also got a big thrust with allocation of Rs 80,000 crore. Allocation of Rs 66,000 crore for education is laudable."

AP is expected to get Rs 4,600 crore under PMGSY and Rs 3,800 crore as its share in Central taxes.

"We are happy that some of the initiatives of the state government like an exclusive women`s bank and special allocation for SC and ST sub-plans have been incorporated in the union budget," Kiran noted.


First Published: Friday, March 1, 2013 - 23:32
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