Loan Waiver to cost 70,000 Crores for AP!

The Loan Waiver for farmers and Dwacra women will cost the new government in Andhra Pradesh about 70000 Crores. In his election campaign, Chandra Babu Naidu had announced the Raithu Runa Maafi and DWACRA Runa Maafi with no cap. He even went on to say it is going to be the first file he is going to sign once he becomes the Chief Minister. But now this waiver will prove as a huge burden for the state exchequer which is currently in deficit of 10000 Crores after the state bifurcation.

Officials have informed Chandra Babu that Raithu Runa Maafi will cost 56000 Crores while DWACRA Runa Maafi will cost 14000 Crore approximately.But Chandra Babu is particular about carrying out the loan waiver. According to the plan, Government will give bonds and certificates to banks for the loans taken by the farmers Government will only pay interest every year and will pay the principal amount only after 5 years.