This is a very good step taken by the Government. This should have been done much earlier. I think this has been done because the Government expects elections in the near future. But whatever, the reason, this is a very welcome move from the Government.
I think instead of waiving off loan to farmers, it would have better to provide them free seeds, tools, technology, marketing facility etc. This sort of waiver will next effect to another section of society.
RE:Waiver of loans to farmers
by King of Kings on Mar 01, 2008 10:12 PM Permalink
In future govt. can think like that. Govt. was doing like that only. But the amount was flowing to middle-agencies only; not to farmers. I feel this move will boost the rural India and hence basicaly powerful India. Jai Kisan, Jai Hind.
RE:Waiver of loans to farmers
by Fried Yakov on Mar 01, 2008 01:52 AM Permalink
Taxpayers in groups should start filing PIL's against the government for wasting the taxpayer's hard earned money on populist measures instead of urgent development of infrastructure and defence capabilities. Such a huge amount of money is literally what the taxpayer's paid to the government for development of infrastructure and security activities and not for populism of the ruling party. It is time that we educated Indians woke up to such massive squandering of limited national resources for populism. True, if the small and marginal farmers require relief, then relief to the tune of 25 % of the loan could be provided. This would have relieved a certain amount of financial burden of the farmers, thwarted corruption, while encouraging production of more food to take care of the rest of the debt, as well as left considerable more money for developmental projects. I think now the taxpayers should demand complete waiver of personal taxes from this populist government as a 'relief measure'.
Keeping in line with Congress policy of "Everything is free!", here goes the worst populist budget that must have ever been seen in the history of the world.
We're talking about siphoning off of 15 BILLION DOLLARS of the Indian public.
15 BILLION DOLLARS. Imagine investing 15b $ to upgrade irrigation systems, educate farmers, put in some innovative buffer schemes to protect farmers' crops when they face losses, infact innovate enough so that farmers never have to face losses.
Anyway, 15B$ is nothing really... our country has been looted by the Congress for more than half a century until now, of far more wealth.
RE:Another free candidate
by Fried Yakov on Mar 01, 2008 01:50 AM Permalink
Taxpayers in groups should start filing PIL's against the government for wasting the taxpayer's hard earned money on populist measures instead of urgent deelopment of infrastructure and defense capabilities. Such a huge amount of money if literally what the taxpayer's paid to the government for development and security activities and not for populism of the ruling party. It is time that we educated Indians woke up to such massive squandering of limited resources for populism. True if the small and marginal farmers require relief, then relief to the tune of 25 % of the loan could be provided. This would have relieved a certain amount of financial burden of the farmers, while encouraging production of more food to take care of the rest of the debt, as well as left considerable more money for developmental projects. I think now the taxpayers should demand complete waiver of personal taxes from this populist government as a 'relief measure'.
Good carrot FM, farmers will vote for congress! But why have you waived crores of rupees? that means people in the banks can create forged loan documents and write off crores of rupees while the actual money may not be even loaned. Congrats. God save india, its getting really corrupt now.
RE:Election.. VoteBank.. Farmers..
by imran patel on Mar 01, 2008 01:06 AM Permalink
Unless we Indians understand the concept of smaller government, I find it difficult to be optimistic about a change in our daily lives.
Think about it, - The government is the biggest employer in the country - The government does NOT make any money, it collects money and then spends it in an un-wisely fashion (I am saying that in a very polite way)
We are still living in this seudo-communist state, where we think government is the solution to all problems. When infact, government is the root of all problems.
I will not blame any government here. It is the nature of the Beast. It is not the right institute to solve our nations problems.
Government will always pander to get votes, because it is a political outfit. We need less government and more private firms.
Private firms run on profits, THE BOTTOM LINE. They have benchmarks They are accountable They have to make profits (Share Holder investment) They are LESS prone to corruption They have leadership that is not pandering to any voting block They encourage competition, eventually to the benefit of the consumer They do NOT have reservations They reward hard work They FIRE lazy people
Agree, private firms cannot do everything. The nations defense, Tax collection, Judiciary and some other functions need to be with the government. Nothing more than that.
A bigger government is a recipie for discrimination, exploitation, corruption and FAILURE.
Unless we Indians understand the concept of smaller government, I find it difficult to be optimistic about a change in our daily lives.
Think about it, - The government is the biggest employer in the country - The government does NOT make any money, it collects money and then spends it in an un-wisely fashion (I am saying that in a very polite way)
We are still living in this seudo-communist state, where we think government is the solution to all problems. When infact, government is the root of all problems.
I will not blame any government here. It is the nature of the Beast. It is not the right institute to solve our nations problems.
Government will always pander to get votes, because it is a political outfit. We need less government and more private firms.
Private firms run on profits, THE BOTTOM LINE. They have benchmarks They are accountable They have to make profits (Share Holder investment) They are LESS prone to corruption They have leadership that is not pandering to any voting block They encourage competition, eventually to the benefit of the consumer They do NOT have reservations They reward hard work They FIRE lazy people
Agree, private firms cannot do everything. The nations defense, Tax collection, Judiciary and some other functions need to be with the government. Nothing more than that.
A bigger government is a recipie for discrimination, exploitation, corruption and FAILURE.
RE:Famers relax now
by Kaandy on Mar 01, 2008 01:27 AM Permalink
Dimag Sathiya gaya hai kya? Tera Baap Loan chukayega kya? It is a big waste of Govt. Money in history!!
There are several readers here and several million outside who are very much dejected by the loan waiver move of the government. And there are several million who, though supported the scheme either wholeheartedly or for an argument sake, are convinced that as a whole this scheme is detriment to the Economy. The Fact is Far Far away from these all.
This move will Bring into the Economy a whopping 5% of the ENTIRE BUDGET. That too with in a span of 3 MONTHS !!!
Firstly, by offering a waiver of OVERDUE loan of small and marginal farmers, which has already been provisioned for in all these time by Banks, by stricter dictation by the Reserve Bank on the entire financial spectrum, the burden on the economy will practically be marginal, if at all it is.
When he said the same for other farmers, his raider was that they deposit 75% of the OVERDUE amount, and not the DUE amount, he is in fact bringing in that 75%, which would otherwise have already been considered by these poor Public Sector Banks as LOST. By provisioning Rs. 10,000 Crore that was there already, he is targeting to get Rs. 30,000 CRORE, which he was hopeless to recover from those farmers anyway. A net gain of Rs. 30,000 Crore. These, otherwise capable farmers, will get the money from whatever source that are available to them. This money would have been remaining untapped eternally.
Would You say now that Chidambaram is a dumb fellow?
RE:Loan Waiver - A Cleaver Move
by Kaandy on Mar 01, 2008 01:29 AM Permalink
Yes. He is a dumb as your theory is. I myself am a economist and I know this is baseless theory. Please study the economics correctly before making such assumptions.
Kaany, you should counter my argument instead of telling that it is base less. An Economist will never do this.
And I am telling you, this is exactly what the FM was thinking on loan waiver.
Tell me first, as to from where he is proposing to get the money. Has the FM told as to where he would get this money from?
Secondly, tell me as to what the RBI's guidelines for Bad Debt and what has been the consequence of such measure in all these years. Tell me as to how these bad debt was provisioned. If you do not know, ask a banker. Have the Banks waived all these money themselves? Or are they asking those borrowers to pay back?
You are telling this is a baseless theory. A theory nonetheless, is not it? What is your theory?
What is your own analysis is on it? I am sure you have none.
And please tell me as to how I will accept as my analysis is wrong. Just because you told so?
RE:Very good move by the FM
by Telveer on Feb 29, 2008 09:43 PM Permalink
Unfortunately, most of the so called marginal and small farmers turn out to be rich benami landlords and agriculture land owners who took agriculture loans and invested them somewhere else. My brother-in-law is a rural Bank officer and he tells me how these loans are abused with active connivance of politicians, local leaders and corrupt bank employees. There is very little anyone can do to control this corruption. If the Govt. really wants to help poor farmers, they should get free seeds, subsidised machinery, free soil testing, free education and counselling, free fertilizer, free pesticides and such. Forgiving loans is just a cheap election gimmick.
RE:Very good move by the FM
by M Kisan on Mar 01, 2008 08:50 AM Permalink
...(subsidies) and better marketing facilities and prices for the farm produce. Talveer, you have somewhat rightly said it. It was necessary but it is obviously not enough. Also most of this 60k Crores will end up with the lenders and the red tape, with hardly any thing left on the positive side for the really poor and hardworking farmer. What will happen in next 4-5 yrs... The repeat of the same story. Surely, most people have already recognized that as an election gimmick
RE:Very good move by the FM
by polle kande on Feb 29, 2008 09:53 PM Permalink
What should we do after next 5 year, when same numbners of farmers were waiting for another load waive off, more suicides. May be many proxy farmers will think it as good way of getting more money and then kill some poor guy and take money from his name. Any cross checks for avoide fraud and such freebi expectations
