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CM Bommai Announces Interest-Free Loans for Karnataka Farmers

The move, according to CM Basavaraj Bommai, will promote agricultural activity in the state and farmers will refrain from taking loans from the unorganized sectors.

Sonali Behera
National Bank for Agriculture and Rural Development (NABARD) would donate 7,500 rupees and the state would pay 2,500 rupees
National Bank for Agriculture and Rural Development (NABARD) would donate 7,500 rupees and the state would pay 2,500 rupees

Karnataka Chief Minister Basavaraj Bommai on Friday announced an increase in the amount of interest-free short-term loans offered to farmers from Rs 3 lakh to Rs 5 lakh starting with the upcoming fiscal year to win over farmers in an election year.

Bommai stated this when presenting the 2023–2034 budget to the state Legislative Assembly. This would guarantee the availability of a hassle-free and need-based lending facility for making essential preparation for farm-related operations.

According to Bommai, the government has agreed to offer an additional subsidy of Rs 10,000 to holders of "Kisan Credit Cards" under the new "Bhoo Siri" program in the years 2023–2024.

This would make it easier for farmers to acquire seeds, fertilizer, insecticides, and other agricultural supplies during times of need.

The National Bank for Agriculture and Rural Development (NABARD) would donate 7,500 rupees and the state would pay 2,500 rupees. Almost 50 lakh farmers in the state will gain from this, he claimed.

Karnataka's next assembly elections are anticipated to take place in April or May. The Chief Minister also introduced the "Shrama Shakthi" program in the budget, which will use direct benefit transfer to give landless women agricultural laborers monthly cash help of Rs 500 per head (DBT).

He introduced the "CM Vidya Shakti Program," which offers free education at government pre-university and government degree colleges, intending to enable all high school graduates to complete their education. According to him, this will help the eight lakh kids in the state.

Bommai called this a "revenue-surplus" budget, noting that for the first time in the state since the COVID outbreak, revenue revenues are projected to be greater than revenue spending by Rs 402 crore.

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