States giving loan waivers should arrange funds on their own, says FM Arun Jaitley

A day after the Maharashtra government announced a loan waiver for farmers, Finance Minister Arun Jaitley has said that states that want to waive off loans should arrange funds on their own.

The Maharashtra government announced a loan waiver and decided to form a committee to decide the criteria of debt relief.

However, addressing media, Arun Jaitley said, "States which want to go in for farm loan waiver will have to generate funds from their own resources."

Farmers in Maharashtra, Madhya Pradesh and Tamil Nadu have been consistently demanding a waiver of loans and had launched protests and strikes.

However, Maharshtra farmers called off the stir after the state government's announcement.

Ending his 'fast for peace', Madhya Pradesh Chief Minister Shivraj Singh Chouhan also announced a slew of schemes on Sunday for the benefit for farmers but issued a stern warning to those who engaged in "incendiary activities". In Mandsaur, five persons were killed in police firing during a farmers' protest on June 6.

Interestingly, the Uttar Pradesh government in its first cabinet meeting had also decided to waive crop loans up to Rs one lakh of small and marginal farmers till March 31, 2016, with the total amount adding up to Rs 36,000 crore.