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?
