Capt meets Modi; wants hike in borrowing limit to meet farm debt waiver

Ruchika M Khanna
Tribune News Service
Chandigarh, August 8

Punjab Chief Minister Capt Amarinder Singh on Tuesday met Prime Minister Narendra Modi to seek relaxation in the Fiscal Responsibility Budget Management (FRBM) rules, to increase borrowing limit to help meet farm debt waiver cost in Punjab.
The Chief Minister has demanded an increase of Rs 10,000 crore in the FRBM limit over and above the Rs 12,000 crore allowed to Punjab by the apex regulatory bank--RBI.

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Punjab needs the money to roll out the debt waiver scheme for indebted small and marginal farmers--a promise made by the Congress before the polls. With the state in dire financial straits, it has become impossible for the state to implement its debt waiver for 10.4 lakh farmers. Punjab needs Rs 9,500 crore to meet the requirement for the rollout of the scheme.
It is learnt that the PM referred the case to the Ministry of Finance.

Later, the CM and state Finance Minister Manpreet Badal met Union Finance Minister Arun Jaitley and requested him to effect the increase.