Microloan debt waiver announced during polls to be included in Budget: Assam CM Himanta Biswa Sarma

Assam Chief Minister, Himanta Biswa Sarma, said that microloan debt waiver as announced by the BJP ahead of Assam polls will find reflection in state budget.

The BJP-led government which came back to power for the second consecutive term will present its first budget in July.

Sarma said, “We have got a list of borrowers in last meeting. They were reluctant to give the list. Work is progressing and the same will find reflection in the state budget to be presented in July.”


The size of the state’s microfinance sector is about Rs 10,900 crore, fallen from Rs 12,000 crore seen in 2019. About 32% of this loan remained overdue for more than 30 days. Going by this portfolio at risk ratio, the size of the debt waiver could be Rs 3,500 crore.

The state’s committee on microfinance loan waiver, formed after Himanta Biswa Sarma sworn in as chief minister, held its second meeting with lenders on Monday to get granular data on the sector.

“We had a meeting and the discussions were on data. We are mining data as much as possible,” head of the committee Ashok Singhal told ET. Singhal, the minister for Guwahati Development Department, is entrusted with the task.

“On Thursday, Friday and Saturday, we will sit and finalise the whole thing. The exposure in this sector is over Rs 10,000 Crore. Some accounts are making regular repayments,” he said.