The Chief Minister has also waived tax on irrigated agricultural land, which will benefit nearly 50 lakh farmers. A loan relief commission has also been set up to consider long-term solutions to farmers' debts. The loan waiver, however, will only apply to farmers who have taken a loan from the agricultural cooperatives. Those who have bank loans will receive no benefit.
"Be it improving education, strengthening infrastructure, providing affordable healthcare or ensuring growth and new opportunities for the youth - we have left no stone unturned in our efforts to build a #NewRajasthan," the Chief Minister later tweeted.
The opposition Congress - which has repeatedly highlighted the distress of the agrarian community -- called the budget election-oriented and suggested that the government is trying to please the farmers, especially in view of its loss in the by-elections in the state's two parliamentary and one assembly seat.
"The government has recalled the existence of farmers just eight months before the elections," said Sachin Pilot, who has led the party to victory in the Ajmer and Alwar Lok Sabha seats and the Mandalgarh assembly constituency.
The loan waiver and its associated burden comes as the state's debt quotient has gone up from 1.21 lakh crore of 2014 to 2.29 lakh crore in 2018.
"After eight months, Vasundhara Raje may not be there. So who is going to manage the deficit financing that she will leave behind," questioned Mr Pilot.
The BJP had assessed that the Rajput anger over the Bollywood movie Padmavat and the cow vigilante attacks in Alwar had damaged its prospects in the by-election.