- The UPA Government fails in meeting the deadline or calls for election before that date and passes on the new found burden to the next Government.
- The Government actually manages to find finances to fund the whopping waive off.
If the outcome happens to be number 1, then its a furthur 'wait and watch' situation. But my concern in this blog is what if the outcome happens to be number 2.!!
Whether policies like Loan Waive off or Reservations are populistic political measures employed by Governements in power , I am not sure. But I cant help wondering what repurcussions do such measures have in an economic sense!
If the Government actually manages to waive off the loans, wont it be sending a message to every farmer in the country that " If you take a loan and repay it, You are a fool!"? Wont these measures act as incentives to loan defaulters to continue to default, because sooner or later , any Government in power will have to follow Chidambaram's precedent and waive it off.
Won't these measures act as deterrents for banks from actually handing loans over to farmers for agricultural developments? Won't these throw our agricultural economy to dwindle furthur from want of funds? In the name of a " Farmer's Budget" are we compromising on the farmer's competance to produce efficiently and make a profit enough to repay a loan? Are we throwing the agricultural sector into the dark ages?
Why can't we on the contrast penalise farmers for defaulting? Why cant we force the agricultural sector into becoming more efficient? This probably leads to the most disheartening and dangerous truth of a democracy like that of ours. That populist Governments no matter how well they mean, cant overlook the pressures of the majority vote!