Bhopal: Supplementary budget allocation ceased to arrange farm loan waiver fund

Bhopal: The finance department, in order to arrange a corpus of Rs 47,000 crore for farm loan waiver, has put a tab on release of funds to departments allocated under supplementary budget. A supplementary budget of more than Rs 22,000 crore was passed in the winter session of state assembly.

Many of the departments have not yet been allocated their share in the supplementary budget. The finance department has put on hold the allocation of share and would use it for sending it in the bank accounts of farmers from February 22 as farm loan waiver. Finance department has been directed from the top level to stop all works and first arrange funds for farm loan waiver.

There was provision of Rs 5000 crore for farm loan waiver in the supplementary budget. The finance department may bring third supplementary budget in the assembly session starting from February 18 for more funds. Chief Minister Kamal Nath has set a target to waive farm loan of 25 lakh farmers, who took loans from cooperative and commercial banks, before code of conduct coming into effect.

The economic crisis faced by the state is also one of the big reasons behind non-release of supplementary budget. Nath had clearly instructed to give priority on essential expenses only as state exchequer is empty. According to finance minister Tarun Bhanot, the allocation of fund under supplementary budget is being done to the departments, keeping financial austerity in mind.

Bhanot said departments have been asked to give details of their expenses of the funds allocated to them in the budget prior to their allocation of fund through supplementary budget. Bhanot said funds have been allocated to the departments, which have provided information about their expenses.

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