The Election Manifesto of BJP in Haryana does not contain loan waiver to farmers. All other parties promised loan waiver. It is a bold step. Reserve Bank of India observed that loan waiver promises and actions of Governments created very bad environment for Bank credit portfolio in the country. Financial system is ruined because of an environment that loans given by Banks are for written off. Political parties compete each other to promise more and more waivers not mindful of adverse effect creating not only on agricultural loans but also on all other loans. It is becoming difficult to bank staff to go to villages for recovery. Still, Political parties, Netas and also to some extent Media championed the cause of loan waiver. The alibi created by these people is that people like Vijay Mallya robbed thousands of crores and all such loans were written off by Banks and then why not poor farmers?
Number one, it is a false propaganda as if Banks waived loans given to fraudsters like Vijay Mallya, Nirav Modi, Mehul Choksi and others. Banks made entries technically written off their loans from their books to arrive profit and loss correctly. However, these loans and borrowers were treated as bad and fraudulent and necessary legal and criminal actions were initiated. Subsequent to written off technically, several thousand crores of properties were attached and recovered the dues. The political parties are belittling farmers by comparing them with fraudsters. Second, even for argument sake, if there is collusion between some Bank officials and fraudsters, it should not be a precedent to do another bad practice. Third, it is true that industrialists, exporters and other entrepreneurs were offered certain concessions/ incentives to establish or run their business in the interest of national economy. Similarly, farmers, other poor people were also offered many concessions/ incentives not only to sustain agricultural activity but also to sustain their livelihood.So, opposition to loan waiver does not mean that farmers' interests are ignored. Provide the relief in other way instead of loan waiver.
Farmers' income is not taxable. That is why, many politicians own farm houses nearby Cities and they were able to misuse this clause. Farmers are provided MSP ( Minimum Support Price) for many crops if not all. Farmers are provided input subsidy to reduce expenditure of agricultural production. Rural India got number of incentives/ concessions provided by Central and State Governments. In addition to these schemes and due to rural distress, cash incentive is now being offered by Centre as well as state Governments in the name of PM Kisan Samman, Rythu Bandhu, Rythu Bharosa, Kalia etc.These measures are in vogue as per policies of respective Governments. No one is against them. The reason for opposing loan waiver is that it creates very bad credit environment in the financial system.
Haryana BJP released its manifesto which provided interest free loans to Dalits, small and medium farmers and other targeted groups instead of loan waivers. we appreciate this bold step despite offer of loan waiver promises by other parties. Hope this will be precedence to other State elections. Time has come to boycott those parties who spoil the entire financial system and credit discipline by promising loan waivers. It applies equally to BJP if it promises loan waivers. Let us hope good days ahead for the country.