New Delhi, Mar 23: Union Finance Minister Nirmala Sitharaman on Monday informed Parliament that the central government has no plan for a complete loan waiver for farmers. Instead, she underscored ongoing measures aimed at strengthening farmers’ economic conditions through targeted credit and welfare schemes.
The minister highlighted the Kisan Credit Card (KCC) program, under which crop loans up to Rs 3 lakh are provided at subsidized interest rates through the Modified Interest Subvention Scheme (MISS). Additional incentives are offered for timely repayment. Collateral-free short-term agricultural loans, including those for allied activities, have also been increased from Rs 1.60 lakh to Rs 2.00 lakh. These measures ensure adequate credit flow under Priority Sector Lending guidelines issued by the Reserve Bank of India (RBI).
Sitharaman also mentioned the government’s support through crop insurance schemes and direct transfers under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), aimed at providing financial security to landholding farmers.
In addition to agriculture, the Finance Minister addressed tax exemptions for armed forces personnel receiving disability pensions. She clarified that these exemptions, which originated under the Income-Tax Act, 1922, continue under the Income-tax Act, 2025, ensuring no disruption of benefits for retired and invalided personnel. Sitharaman detailed the medical evaluation process carried out annually by service-specific medical boards, which determines fitness, impairment, and entitlements for disabled personnel.
She emphasized that the Finance Bill, 2026, explicitly maintains existing exemptions for disability pensions, reflecting the government’s commitment to preserving pre-existing legal benefits without introducing new levies or removing prior entitlements.