We will find resources for waiver: Chidambaram

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Keywords: Loan Waiver, P Chidambaram

New Delhi: Finance Minister P Chidambaram on Friday announced a Rs 60,000-crore relief package for farmers, including complete waiver of loans given to small and marginal farmers.

Presenting his last Budget before the General Elections, Chidambaram announced waiver of Rs 50,000 crore worth of loans to small and marginal farmers and a settlement scheme for other farmers that would cost the exchequer another Rs 10,000 crore.

And in his post-budget interview to Network 18 Managing Director Raghav Bahl, Chidambaram said there was a political consensus on the issue of loan waiver for farmers.

Chidambaram also said the government would mobilise the resources needed, though he did not explain how.

"There is a clamour all round that the debt of farmers must be relieved. In fact all political parties are agreed that debt relief must be given. Therefore, government has done what I believe is the right thing. We have granted debt relief and we will find the resources. Apart from non-tax revenues, there are other ways to provide the liquidity," Chidambaram clarifies.

When asked if it is an election-oriented Budget, Chidambaram rubbishes the claim.

"I rather have election which takes place regularly every five years. In fact I would rather have elections for centre and states take place together so that we can focus on an governance for four years," the Finance Minister says.

The decrease in growth rate in the agriculture sector is certainly worrying and Chidambaram says the government's focus will be to increase production in the farm sector.

"If necessary we will import food but the idea is to increase production and I have disclosed in my speech that the Ministry of Agriculture expects all time records at least in five crops some of which are not doing well, but if necessary certainly we will import food," he adds.