Finance Minister P Chidambaram today announced a Rs 60,000-crore relief package for farmers, including complete waiver of loans given to small and marginal farmers.

Presenting his fifth Budget and the last one before the general elections, Chidambaram announced waiver of Rs 50,000 crore worth of loans to small and marginal farmers and a settlement scheme for other farmers that would cost the exchequer another Rs 10,000 crore.

Chidambaram said that according to estimates, three crore marginal and small farmers would benefit from the government's amnesty.

Under the one-time settlement scheme that will benefit another one crore farmers, the government will give a rebate of 25 per cent on payment of outstanding loans.

Chidambaram said that according to estimates, three crore marginal and small farmers would benefit from the government's amnesty.

Under the one-time settlement scheme that will benefit another one crore farmers, the government will give a rebate of 25 per cent on payment of outstanding loans. The agricultural credit of scheduled banks is estimated at Rs 2,40,000 crore in the current fiscal and it would go up to Rs 2,80,000 crore in 2008-09.