Siddaramaiah slams Centre over reduction of NABARD loans
Bengaluru: Karnataka Chief Minister Siddaramaiah on Friday slammed the Centre over the reduction of the loan amount to Karnataka by the National Bank for Agriculture and Rural Development (NABARD).
“The NABARD has reduced the loan amount provided to Karnataka’s farmers by 58 per cent this year. Can this injustice done to the state’s farmers by the Center be justified? This is a grave injustice to the state’s farmers,” said the Chief Minister.
He also criticised Union Minister Pralhad Joshi for justifying the loan reduction, adding that the loan amount given to farmers through NABARD should increase every year.
“NABARD provides loans to farmers at an interest rate of 4.5 per cent, and the state government bears this interest. However, with the reduced funding, the state is now forced to turn to commercial banks and pay 10 per cent interest, resulting in a significant loss for Karnataka,” the Chief Minister said.
Siddaramaiah added that he has also requested Union Finance Minister Nirmala Sitharaman, who represents Karnataka in the Rajya Sabha, to rectify this “injustice”.
Meanwhile, talking to reporters in New Delhi on Friday, State BJP President Vijayendra accused Siddaramaiah of misleading people about the NABARD loan reduction issue.
“Holding Finance portfolio, Siddaramaiah is providing incorrect information about the funds received from the Central Government. Banks allocate 40 per cent of their funds to priority sectors like agriculture. Has CM Siddaramaiah forgotten this?” he questioned.
He added that Siddaramaiah’s claims of 58 per cent cuts were baseless and clarified that similar funding adjustments were being made in other states like Gujarat.
“Despite knowing the facts, Siddaramaiah is blaming the Central Government, which does not credit to his position as Chief Minister,” he remarked.
The BJP leader also criticised the state government for cutting funds for welfare schemes like the Bhagya Lakshmi and pending milk subsidies amounting to over Rs 1,000 crore.
“They even stopped the additional Rs. 4,000 given under the Kisan Samman Yojana initiated by former CM B.S. Yediyurappa. This shows that the Congress government has no concern for the poor and is attacking their livelihood,” said Vijayendra.