Karnataka Budget: Loan tenure limit extended for farmers, subsidy announced

Bengaluru:

To woo farmers in the election year, Karnataka Chief Minister Basavaraj Bommai on Friday announced raising the limit of interest-free short-term loans to farmers from Rs 3 lakh to Rs 5 lakh from the coming financial year.

Presenting the Budget 2023-34 in the State Legislative Assembly, Mr Bommai, who also holds the Finance portfolio, said it would ensure availability of hassle-free and need-based credit facility to make necessary preparations for agriculture-related activities.

He said, “This year, loans worth Rs 25,000 crore will be distributed to more than 30 lakh farmers.”

The Chief Minister said a ‘magnificent’ temple dedicated to Lord Rama would be built at Ramdevara Betta in Ramanagara district.

Mr. Bommai said, the government has decided to give an additional subsidy of Rs 10,000 in the year 2023-24 under a new scheme ‘Bhu Siri’ for Kisan Credit Card holders.

The Chief Minister said that this would facilitate the farmers to buy seeds, fertilisers, pesticides and other agricultural inputs in times of crisis.

The state will contribute Rs 2,500 and NABARD (National Bank for Agriculture and Rural Development) will give Rs 7,500.

“This will benefit about 50 lakh farmers of the state,” he said.

Assembly elections in Karnataka are expected to be held in April-May.

The Chief Minister also announced the ‘Shram Shakti’ scheme in the budget, which will provide financial assistance of Rs 500 per person per month to landless women farm laborers through Direct Benefit Transfer (DBT).

With the aim of enabling all children who graduate from high school to continue their higher education, he announced free education in government pre-university and government degree colleges under the ‘CM Vidya Shakti Yojana’. He said that this would benefit eight lakh students of the state.

Noting that for the first time in the state, post the COVID pandemic, revenue receipts are estimated to exceed revenue expenditure by Rs 402 crore, Bommai said it is a “revenue-surplus” budget.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)