Sir,
I would like to analyse and highlight the impact of loan waiver on the general public and economy as a whole. to start with, the main objective of taking loan by the farmers is to make investment in farm production with the ultimate aim to raise income which is a significant economic activity. But the benefits of loan can be realised only when it is repaid well in time, otherwise, it would adversely affect our economy as a whole. In this context, I would like to highlight the main effects of loan waiver on the people as well as the economy as a whole.
Firstly, loan waiver is totally uneconomic and against the interests and welfare of the country. The amount of loan so waived is debited against the public account and if not paid back, there will be reduction in GDP, GNP and per capita income. Besides, it will encourage the corrupt people to manage loans on the name of crop loan with the intention to grab public money and this vicious cycle will remain running generation after generation leading inflation and general poverty. The policy, if continues, may prove very disastrous for the economy. Thus, the economic of loan waiver can never be recommended. However, in case of natural calamities like floods, draught, locust attacks etc; loan waiver may be economical in favour of the victims and economy. In case of other urgencies, there are alternatives like subsidy, postponement of repayment and reduction in rate interest. But there can never be any excuse with the political parties to promise loan waiver in exchange for votes. In fact, it is a type of corruption bred by political parties. Hence, no body should be allowed to play with State exchequer only to lure voters.
It is well known to all of us that some political parties have promised to waive loans in exchange of votes in the State Assembly elections held in the State of Rajasthan, Madhya Pradesh and Chhatisgarh and how it is time to fulfill the promise. And they should never be allowed to encroach upon the State treasury and if attampted, the amount should be deducted from personal accounts of the concerned legislators. The Election Commission of India should also take notice of such corruption based election manifestos of the political parties so that corrupt practices could be checked.
O P Sharma
Bagnoti Nowshera
Trending Now
E-Paper
Follow our WhatsApp channel