The big question: Is the debt waiver 'only solution' to farmers' problems?
Saturday - December 15, 2018 12:42 pm ,
Category : WTN SPECIAL
Modi government can announce farmers' debt waiver scheme to remove farmers' ‘resentment'!
Analysis: Is the farmers’ debt waiver one and only meant to win elections?
DEC 15 (WTN) - After the BJP's defeat in Madhya Pradesh, Rajasthan and Chhattisgarh Assembly election, the review period is underway, what are the reasons behind the BJP's defeat? If we talk about the Madhya Pradesh, it is being said that due to the resignation of the farmers and the promise of the debt waiver of the Congress, the BJP had to face defeat. Reviewers believe that after the demonetization, farmers had to suffer of the cash problem for almost a year due to which they could not buy seeds, fertilizers and farming related equipment, due to which the farmers voted against the BJP in Assemnly election.
The biggest reason behind the congress victory in Madhya Pradesh and BJP's defeat is the Congress's electoral promise of farmers' debt waiver. After BJP's defeat in Madhya Pradesh, it is being said that the Modi government of the Center can also play a major stake in the farmers’ debt waiver so that it can be beneficial in the 2019 Lok Sabha elections, the same advantage which Congress had gained during the UPA regime in 2009 Lok Sabha elections.
For your information, let you know that in 2008, the Congress-led UPA government waived the debt of about 72 thousand crores rupees of farmers across the country. Congress had the direct electoral gains of this debt waiver and in the 2009 Lok Sabha elections; the Congress won more than 200 seats.
If we talk about the Assembly election in Madhya Pradesh, in the 2013 assembly elections, the Congress had won 38 seats in the rural area, but this time the fate of farmers' debt waivers remained in favor of the Congress and party won 68 seats in the rural area and defeated the BJP after 15 years.
After the defeat in the three state Assembly elections, it is being said that the Modi government of the center can waiver the debt of 4 lakh crore rupees of 2.63 crore farmers of the country to please the angry farmers. At the same time, the Modi government can announce the increase in support price along with farmers’ debt waiver. Not only that, it is being said that many other schemes can also be introduced to attract the farmers to overcome the so-called annoyance of the farmers.
The debt of farmers is a populist scheme for the political parties, but such a plan has adverse effects on the financial condition of the country and the banks. To make the farmers please, the Modi government will announce the debt waiver scheme, but it can increase the fiscal deficit. For your information, let you know that the country's fiscal deficit has been more than 3% at this time.
In this fiscal year, the government had planned to restrict the fiscal deficit up to 3.3 percent i.e. 6.24 lakh crore rupees of the GDP. But some credit rating agencies, without farmers’ debt waiver scheme, have said that the total fiscal deficit of the country has reached 3.5 percent of GDP, ie 6.67 lakh crore rupees.
Here, former governor of the Reserve Bank of India Raghuram Rajan has opposed the farmers’ debt waiver. Rajan says that the debt waiver affects the revenue. According to Rajan, "The biggest advantage of farmers' debt waiver goes to the negotiators. Often, the benefits of these types of schemes are gained by better position people instead of the poor.”
Earlier, when Prime Minister Narendra Modi pledged to waiver the debt of farmers of the state during the campaign for Uttar Pradesh Assembly elections, it was also opposed. Arundhati Bhattacharya, the immediate chairperson of the country's largest bank SBI, also objected to the farmer's debt waiver. Bhattacharya had said, "The borrower will wait for the next election instead of repaying the loan." Among those who opposed the farmers' debt waiver, the deputy governor of the Reserve Bank, S. S. Moonda was also included.
The big question is whether the farmers’ debt waiver is the only solution to the problem of farmers? From time to time, political parties promise farmers' debt waiver, but leaders of political parties forget that the debt waiver increases the fiscal deficit and due to which the government has little money saved for development works.
Debt waiver is not the only solution to the problems of farmers, but their financial condition can be strengthened only by proper arrangement of seeds, fertilizers, water and electricity. Because the schemes like debt waiver only increases the fiscal deficit and have a negative impact on the financial position of banks, whose side effects can be seen later.
DEC 15 (WTN) - After the BJP's defeat in Madhya Pradesh, Rajasthan and Chhattisgarh Assembly election, the review period is underway, what are the reasons behind the BJP's defeat? If we talk about the Madhya Pradesh, it is being said that due to the resignation of the farmers and the promise of the debt waiver of the Congress, the BJP had to face defeat. Reviewers believe that after the demonetization, farmers had to suffer of the cash problem for almost a year due to which they could not buy seeds, fertilizers and farming related equipment, due to which the farmers voted against the BJP in Assemnly election.
The biggest reason behind the congress victory in Madhya Pradesh and BJP's defeat is the Congress's electoral promise of farmers' debt waiver. After BJP's defeat in Madhya Pradesh, it is being said that the Modi government of the Center can also play a major stake in the farmers’ debt waiver so that it can be beneficial in the 2019 Lok Sabha elections, the same advantage which Congress had gained during the UPA regime in 2009 Lok Sabha elections.
For your information, let you know that in 2008, the Congress-led UPA government waived the debt of about 72 thousand crores rupees of farmers across the country. Congress had the direct electoral gains of this debt waiver and in the 2009 Lok Sabha elections; the Congress won more than 200 seats.
If we talk about the Assembly election in Madhya Pradesh, in the 2013 assembly elections, the Congress had won 38 seats in the rural area, but this time the fate of farmers' debt waivers remained in favor of the Congress and party won 68 seats in the rural area and defeated the BJP after 15 years.
After the defeat in the three state Assembly elections, it is being said that the Modi government of the center can waiver the debt of 4 lakh crore rupees of 2.63 crore farmers of the country to please the angry farmers. At the same time, the Modi government can announce the increase in support price along with farmers’ debt waiver. Not only that, it is being said that many other schemes can also be introduced to attract the farmers to overcome the so-called annoyance of the farmers.
The debt of farmers is a populist scheme for the political parties, but such a plan has adverse effects on the financial condition of the country and the banks. To make the farmers please, the Modi government will announce the debt waiver scheme, but it can increase the fiscal deficit. For your information, let you know that the country's fiscal deficit has been more than 3% at this time.
In this fiscal year, the government had planned to restrict the fiscal deficit up to 3.3 percent i.e. 6.24 lakh crore rupees of the GDP. But some credit rating agencies, without farmers’ debt waiver scheme, have said that the total fiscal deficit of the country has reached 3.5 percent of GDP, ie 6.67 lakh crore rupees.
Here, former governor of the Reserve Bank of India Raghuram Rajan has opposed the farmers’ debt waiver. Rajan says that the debt waiver affects the revenue. According to Rajan, "The biggest advantage of farmers' debt waiver goes to the negotiators. Often, the benefits of these types of schemes are gained by better position people instead of the poor.”
Earlier, when Prime Minister Narendra Modi pledged to waiver the debt of farmers of the state during the campaign for Uttar Pradesh Assembly elections, it was also opposed. Arundhati Bhattacharya, the immediate chairperson of the country's largest bank SBI, also objected to the farmer's debt waiver. Bhattacharya had said, "The borrower will wait for the next election instead of repaying the loan." Among those who opposed the farmers' debt waiver, the deputy governor of the Reserve Bank, S. S. Moonda was also included.
The big question is whether the farmers’ debt waiver is the only solution to the problem of farmers? From time to time, political parties promise farmers' debt waiver, but leaders of political parties forget that the debt waiver increases the fiscal deficit and due to which the government has little money saved for development works.
Debt waiver is not the only solution to the problems of farmers, but their financial condition can be strengthened only by proper arrangement of seeds, fertilizers, water and electricity. Because the schemes like debt waiver only increases the fiscal deficit and have a negative impact on the financial position of banks, whose side effects can be seen later.
