if the ministry will allocate 60000 croreres for unification and nationalisation of rivers each and every citition and former also will get happy.it will help us to upgrade evergreen national economy .in futer formers never get loans easly
All Budget money is not from Tax payers money only. Indian Government has billions of surplus money because of booming Economy. From last 10 years Indian Economy is growing between 6% to 9%. Today Indian government has billions of Rs and Budget surplus in hand because of booming Economy. This is the right time to implement Budget and help poor and needy.
Freebies won't help in the long run. Its only a temporary solution. How is the Govt going to meet the Rs.60,000 crores earmarked for this purpose? Has any provision been made for this? I think very cleverly he has left it to the new and upcoming Govt after the elections in 2008.
Instead, educating the farmers as to how manage crops in times of less rain, crop rotation, right crop for the right climate, in times of crisis, fertilizers at subsidised rates, loans at minimum interest rates, or waiver of interest, etc. can be planned for and implemented.
It is like giving free money to a begger. Once he tastes free money, he will never work. Instead of free money, show him ways to work and earn his bread. That should be the way out for a long term benefit.
It is great to see that the Finance Ministry has realised this atleast now and has taken the first step.
Also, it is only just that the economic prosperity that many sectors in India is experiencing in the last few years be shared with the small and marginal farmers, who are not able to otherwise participate in the boom, by leaving their farms and joining call centres.
The Congress Party came back to Power because of the disaffection of marginalised populace who could not benefit immediately from the booming economy, so it is right that the Party gives something back to its consitituents.
In the process the Banking sector gets a much needed clean-up and the Bank Managers have been made happy.
Win-Win for all concerened. Bravo, Mr Chidambaram.
I am sure thousands of Bank Managers in India are saying thanks to the Finance Minister for announcing loan waiver to small and marginal farmers amounting to $15 billion.
These loans have caused much headache and footwork for the Bank Mangers tasked with recovering them. The Indian banking and legal system being what they are, these loans had to be meticulously documented,and the loan documents kept alive by regular acknowledgements from the borrowers. The loan servicing was a big job, with regular visits and writing of reports. Many of the loans had to be first classified as difficult then doubtful and annually audited with voluminous reports. Then the individual banks had to claim reimbursements for these doubtful loans from another Government Organisation. The carrryiing cost of these small loans was much more than the original loan amount and the process took a few years.
Now with a single step, the Finance Minister has enabled the Banks to remove these loans from the Banks' books and give immense relief to the Bank Managers.
There are similar loans to other small sectors like small businesses which may also have to get similar relief in future.
In fact there was a joke doing the rounds when such loans were given under political pressure in Loan Melas: 'why not disburse the loans directly by debiting the Profit and Loss A/c, saving trouble all around and also get tax relief'.
It is great to see that the Finance Ministry has realised this atleast now and has
who is small and marginal farmers pl explain, i think small and marginal farmers are relatives and party members of ruling party, so it will not go to correct and effected farmers in our nation.
Is not it a surprise for all of us that so much farm loan had been distributed in all these years? We had an idea that successive governments cared a hoot for these poor people who happened to be the backbone of our country.
The Banks need not have to keep those unproductive loan papers in their strong rooms, any longer.
The biggest beneficiaries are the Banks. This Rs 30,000 Crore (the remains of the 25% waiver for other farmers) will directly go to their books in hard cash.
And while doing this exercise, the government is loosing practically nothing at all. The entire Rs. 60,000 Crore has already been provided for against Bad Debts by the Banks in all these years. Well distributed in these Four Years.
The Cleaver Move is the Brain-work of our PM, FM and some good economists who could think of such a good idea. By practically spending nothing, Votes of so many people are ensured.
It was a painstaking excersise since last 4 years, and the timing was perfect.
