Farmer Loan Waiver Is Politically Motivated And Is Nothing But Bad Economics
By Sriraj Singhania
Loan Waivers do no good either to the farmer or to the economy. It is just an emotional pill used to eke out political benefits.
The Reason For Such Loan Waivers
The staple pre-election diet of waiving farm loans to purchase the votes of farmers is what is the reason behind this ‘uneconomical’ and ‘expensive’ trend.
To put some facts into place, the NDA government slumped to a shocking defeat in the 2004 elections because of the lingering effects of the 2002 drought as they had not taken some major steps to remedy the situation.
In contrast to that, UPA stormed back into power in the 2009 elections, largely on the back of a Rs. 70,000 crore farm loan waiver it announced in 2008. The difference can clearly be seen. BJP seems to be walking on the same path to secure its already strong hold over the upcoming elections.
Read the rest of the article here.
https://edtimes.in/2017/07/farmer-loan-waiver-is-politically-motivated-and-is-nothing-but-bad-economics/