Karnataka Budget: Kumaraswamy waives farm loan upto Rs 2 lakh

Mumbai: Amid high hopes of farm loan waiver, Karnataka Chief Minister H D Kumaraswamy will present the maiden budget of the Congress-JD(S) coalition government's today. During the election campaign, the Kumaraswamy-led JD(S) had promised to waive farm loans borrowed both from cooperative and nationalised banks within 24 hours of coming to power.

However, financial and economic experts and several government officials have expressed concern over the likely impact of loan waiver on the state's finances. It will be interesting to see how Kumaraswamy, who has in the past claimed that he is not an expert on the economy, will strike a balance between loan waiver, flagship schemes of the previous government, new schemes or programmes if any, as also infrastructure needs of the state.

Here are the updates of the Karnataka Budget 2018: 

* Budget copies being taken inside the Karnataka Legislative Assembly. Chief Minister HD Kumaraswamy will present the government's first budget.

* "It is a new experience for me as a finance minister. I have taken up this as a challenge to give a surplus budget," said Karnataka CM H D Kumaraswamy before presenting the government's first budget.

* Karnataka Chief Minister HD Kumaraswamy presents the government's first budget at Vidhana Soudha.

* Excise duty increased to generate funds for farm loan waiver.

* Kumaraswamy announces farm loans upto Rs 2 lakh waived. He also proposed 4 per cent tax hike on liquor in the budget.

* To facilitate the farmers to avail new loans action will be taken by the govt to issue clearance certificate by waiving the arrears form the defaulting account. For this purpose, Rs 6500 crore is earmarked in 2018-19 budget: Karnataka CM HD Kumaraswamy while presenting the budget

* I have decided to limit the loan amount to Rs 2 lakhs. Due to this crop loan waiver scheme, farmers will get the benefit of Rs 34,000 crore: HD Kumaraswamy while presenting the budget in Vidhana Soudha.

* I have decided to waive all defaulted crop loans of farmers up to 31 Dec 2017 in the first stage. Farmers who repaid the loan within time,as an encouragement to the non defaulting farmers, I have decided to credit the repaid loan amount or Rs 25000 whichever is less: Karnataka CM Kumaraswamy.

* A special package of Rs 150 crore has been provided for repairs of government primary, high school and pu colleges buildings

* 42 continuous ambient air quality monitoring stations to come up with Rs 96 crore investment under district mineral fund

* Hike in petrol prices by Rs 1.14 and Rs 1.12 in diesel proposed.