No Proposal For Farm Loan Waiver, Govt Focuses On Credit Support: Sitharaman

New Delhi, Mar 23: Finance Minister Nirmala Sitharaman on Monday said there is no proposal under consideration for a complete loan waiver for farmers, while outlining measures taken to strengthen their financial condition.

Replying in the Lok Sabha, she said the government is ensuring timely and adequate credit through schemes like the Kisan Credit Card, under which crop loans up to Rs 3 lakh are provided at subsidised interest rates.

She said collateral-free short-term agricultural loans have been enhanced from Rs 1.60 lakh to Rs 2 lakh, alongside efforts to ensure adequate credit flow to agriculture under priority sector lending norms of the Reserve Bank of India.

The minister also highlighted initiatives such as crop insurance and direct income support through PM-KISAN.

On another query, Sitharaman said disability pension for armed forces personnel will continue to be exempt from tax under the Income-tax Act, 2025, with the Finance Bill, 2026 proposing to explicitly retain the exemption.

She clarified that the provision ensures continuity of earlier exemptions and does not introduce any new levy or withdraw existing benefits.

As of January 31, 2026, over 1.47 lakh armed forces personnel have retired with disability, while nearly 89,600 personnel invalided out of service are receiving disability pensions, she added.

The minister said medical fitness of personnel is assessed annually, with classification and decisions on service eligibility taken by designated medical boards as per prescribed regulations. (Agencies)