WAIVER OF AGRICULTURAL LOANS: SOCIAL JUSTICE OR A TRAVESTY THEREOF?

摘要

The last day of February is an exciting time for people who are part of the capitalist sector in Lidia. It is when the Wizard of Central Government Ministry, or the Finance Minister of the Union government, announces the budget for the next financialyear, hi the 2008 "populist" budget, a centerpiece was the Rupees (Rs) 60,000 crore (equal to ten million) offer to completely write off the bank debts of farmers with two hectares or less (almost five acres) and to provide a twenty-five percent rebate against the one-time settlement (OTS) of debt for farmers with over two hectares. In the midst of a global financial crisis, this gift from the Finance Minister to the farmers in the form of an agricultural debt waiver actually resulted in a boon for banks. Because of this agricultural waiver, the government provided liquidity to the banks in an amount up to 60,000 crore, so the banks could recover Rs 60,000 crore worth of Non-Performing Assets(NPAs). Without the debt waiver, the banks were not in a position to get those loans back through repayment? An opposition party, the Bharatiya Janata Party, accused the United Progressive Alliance (UPA) party of trying to sway the votes of farmers, a major voting population, with the agricultural debt waiver andthe opportunity to obtain fresh loans from the bank. The announcement was made just a year before the assembly elections and right before the legislative assembly elections in some states (like Kamataka).'