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Credit for farm loan waiver

Finance Minister, in his budget presented in Lok sabha today, proposed to waive agricultural loans given by scheduled commercial banks, regional rural banks and cooperative credit institutions to small and marginal farmers up to March 31, 2007 and due for December 31. This announcement has weakened the market. Sensex dropped by over 200 points.


A reader has commented – “Loan waiver will certainly vitiate the recovery environment in the country.The impact would go beyond two to three years. Whom it was who tremendously increased the debt burden of the farmers by doubling the farm credit in three years. It was this govt. only. Is it prudent? First load them with such a heavy burden then waive and create a heavy burden for the exchequer.”

This announcement has been made keeping next year’s general elections in mind. There has been a competition between political parties to claim credit for this, as it is expected to result in farmers” votes.


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7 Responses

  1. Service_to_all says:

    Hello Sir,

    The years that are going to follow will have heavy burden on the encumbent govt. Anyway that is not his problem now. If they win, they will take care in the next budget, while if they loose the elections, it is going to be the problem of the new govt. which takes over.

    Regards,
    SERVICE TO ALL

  2. jmalhotra says:

    jmalhotra

    indeed a political move and nothing else to win the heart of voters…

  3. mysteriousdoc says:

    this budget was very much expected.. like the railway budget anyone at chidambrams place would have done the same i mean any politician… thats what politics is all about .. but an intelligent voter would should never be deviated from the real situation.. this budget is definitly going to put lot of pressure on indian economic status.. which will lead to heavy price gains in the next term…

    mysteriousdoc

  4. jmalhotra says:

    jmalhotra

    not a surprise as it was expected tht they will do something good to gain votes by favouring the masses

  5. Service_to_all says:

    Hello,

    Exactly. This is clearly an election budget and definitely, next year if Congress comes back to power, this man is going to bring all the stringent tax structures, which he has done on earlier occasions and is quite capable off.

    Regards,
    SERVICE TO ALL

  6. lkjhgf says:

    Politicians always find the better find to win inte election and the opposite party leader tries to show it a weaker point by taking some or other act and thats the politics

  7. lkjhgf says:

    This budget is definately goingto change the economical status of the country.
    Also one should always consider the real fact b4 voting someone

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