Loan-waivers, subsidies and promises directly affecting economy must not be allowed as part of poll-manifestoes
Former Governor of Reserve Bank of India RBI Raghuram Rajan has very rightly raised concern of vote-catching gimmicks like loan-waivers for farmers which very adversely affect the economy and mute middle-class tax-payers, with farmers ultimately at loss by one-time advantage of availing gimmick loan-waiver. There must be a complete ban on such promises like subsidies, loan-waivers etc to be part of poll-manifestoes of political parties.
Ultimate sufferer of such loan-waivers is mute category of middle-class tax-payer who has to bear burnt of additional taxes or cost-inflation due to deficit economy caused due to loan-waivers, subsidies or other schemes directly affecting public-exchequers. Even subsidy-system should be fast abolished in a gradual manner. Agricultural income over certain...