What happened
Maharashtra is preparing a large farm-relief package that includes writing off around Rs 48,000 crore in farm loan dues and around Rs 8,000 crore in farm-power dues. The state government has asked for a committee report on the scheme’s fiscal cost and structure before taking a final decision.
Background and earlier position
Farm loan waivers are a recurring policy response to agricultural distress in India, but they often create a large burden on state finances. Maharashtra has faced similar debates earlier because waiver schemes can give immediate relief to farmers while also raising questions about moral hazard, targeting, and fiscal consolidation.
What changed now
Why it matters for UPSC
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