This is primarily going to write off the bank books and the government will pay them via G-Sec bonds, securities, etc. More paper, to write off some paper!
The tax payers are INDIRECTLY taxed to fulfill this budget deficit. What did the FM really give the people. The tax rebates are zilch in comparison to what he does to waive off such loans. This primarily benefits the rich farmers who exploit the systemm. These are local politicians who know how to swindle. Many illiterate farmers never go to the banks, and their prime lenders are the private money lenders, who will charge exorbitant rates of interest. When those sharks are allowed to continue to operate, we are going to see this cycle of waivers repeated every few years.
Does it really pay to call yourself a farmer, instead of being employed?
RE:Where is the money?
by SRISHAIL CHAVAN on Feb 29, 2008 01:47 PM Permalink
u r right...I think if loans are waived like this...framers will never ever be motivated to pay back...one more think... I dont know how many small and marginal farmers will waste their time in getting loan from bank.. its only the rich farmers,with strong political clout n with relations with bankers who take these loans..I wish these waivers really help the farmers who need help...
