HDK waives 34K cr farm loans, but makes fuel, power costlier
BENGALURU: Keeping his pre-poll promise, Karnataka Chief Minister H D Kumaraswamy on Thursday announced a Rs 34,000 crore farm loan waiver, but in a contentious move proposed a hike in taxes on fuel and power in the maiden budget of the Jd(s)-congress coalition government.
Kumaraswamy, who holds the finance portfolio, said the increase in taxes on petrol, diesel, power and liquor was aimed at mopping up additional revenue to offset the burden on the exchequer caused by the farm loan waiver.
He, however, capped the agricultural loan to be written off at Rs 2 lakh, saying it would not be right to waive loans of higher value. Kumaraswamy said all defaulted crop loans up to December 31, 2017, will be written off in the first phase.
The JD(S) leader had, in the run-up to the assembly polls, promised he would waive farm loans totalling Rs 53,000 crore within 24 hours of assuming office.
The chief minister said the quantum of loans paid by every farmer, who had not defaulted on repayment, or Rs 25,000, whichever is less, will be credited to their bank accounts.
However, in a potentially controversial move, he proposed to increase the rate of tax on petrol and diesel by Rs 1.14 and Rs 1.12 per litre respectively. The tax on electricity will also be raised from the existing 6 to 9 per cent. The Congress, which is playing second fiddle to the JD(S) in Karnataka despite having more than double the number of MLAS, has been hugely critical of the Modi government over the frequent upward revision of fuel prices.
Congress president Rahul Gandhi had even thrown a “fuel challenge” to Prime Minister Narendra Modi after the latter accepted an online fitness dare from Indian cricket captain Virat Kohli in May.
The BJP had a field day as it used the fuel price hike in the state to hit back at Congress chief Rahul Gandhi.
On Thursday afternoon, the BJP posted a scathing tweet: No takers for Rahul Gandhi’s #Fuelchallenge, not even his government! This is what happens when you pretend to know and preach things that you have no idea about!
The budget also proposes to raise from 10 paise per unit to 20 paise per unit the tax on consumption of captive energy.
AMETHI: Congress president Rahul Gandhi on Thursday termed loan waivers justice for farmers, mentioning Karnataka where the Congress-jd(s) government announced a scheme earlier in the day to write off debts of Rs 34,000 crore.
“In Karnataka, our government has waived the loans of farmers, he told a gathering on the last day of a two-day visit to his Lok Sabha constituency.
We are only asking for justice. If you can waive the debt of the richest people, you need to do it for farmers as well,” he said during the meeting with farmers at Mukutnath Inter College in Gauriganj's Tala Khajuri village.
He said if the Congress comes to power in the next Lok Sabha elections farmers will be our top priority .
Gandhi said petrol and diesel will be brought under the Goods and Services Tax under the Congress government.
When our government comes to power in 2019, we will change the GST, there will be one tax. Things which are used most by the people will be exempted and petrol and diesel will be brought under its ambit,” he said.
He mentioned a plan for a food park in his constituency with 40 to 50 units manufacturing items like chips, pickles and ketchup.
He said the Narendra Modi government at the Centre had snatched the project from Amethi.
“You must have heard that a food park of Baba Ramdev is coming up in Noida, but not in Amethi, the Congress chief said.
It is my promise to the farmers of Amethi, Raebareli and Sultanpur that once we come back to power, the food park, bigger than the one planned earlier, will come up here so that you can get the right price for your produce. And I will inaugurate it,” he said amid applause. Gandhi said he would help the farmers in Amethi to get the necessary technical knowhow.
Gandhi said he believed that the country cannot progress unless the farmers are helped. This is the difference between our thinking and that of the NDA and Narendra Modiji who has faith in himself and 10 to 15 officials around him, but not the farmers,” he said.
Earlier in the day, Gandhi held a ‘janata darbar' at the Congress office in Gauriganj, the district headquarters, where he heard people's grievances.
Former Union minister Sanjay Singh and his wife Ameeta Singh also met him.
“A discussion on how to make the Congress stronger in Uttar Pradesh was held with Rahul Gandhi,” Singh said later.
Sangita Anand, daughter of former Uttar Pradesh minister and senior BJP leader Ram Lakhan Passi, and her husband also talked to him.
Asked about the meeting, Anand said she was there to see “my MP and nothing else”.
Gandhi visited party leader Baijnath Tiwari, whose wife passed away recently, to offer condolences and met former Amethi block pramukh Ram Murti Shukla.
In Naraini village, he paid homage to CRPF jawan Anil Maurya who was killed fighting Naxalites in Chhattisgarh.