Chennai: Finance Minister P Chidambaram has said he will inform the Parliament on Friday how the government would compensate banks for the losses incurred on account of the farm loan waiver worth Rs 60,000 crore.

"I'll explain about the resources during my reply to the discussion on the budget on Friday," Chidambaram said here last night, while addressing Congress workers. He added, "another bonanza awaits people when the sixth Pay Commission submits its report by the end of this month".

On the doubts raised by the opposition led by BJP and some economists about the ability of the government to compensate the banks, saying the loan waiver may lead to the collapse of some cooperative banks, he said the government would compensate the banks. "Will I and Prime Minister Manmohan Singh appear for examination without making proper preparations?", he asked.

Coming down heavily on opposition parties for describing the budget as election-oriented, Chidambaram said elections may come and go and so will governments. But people's welfare and the country's development should continue. "Those who stalled the proceedings of Parliament for three days raising the farmers issue, were stunned when I announced the waiver of farm loans at one stroke. Now they ask where are the resources," he said.

Chidambaram said under the UPA Government's rule, the country's economic growth rate had reached 8.8 per cent, against 5.9 per cent during the previous BJP-led NDA regime. If the present rate was sustained, one crore jobs would be generated per annum and the per capita income would increase to 7.2 per cent.

Source : PTI