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 limit should be taxed because ordinary category of farmers have no benefit from such tax-free income while ultra-rich personalities including famous celebrity-icons and politicians misuse the provision by declaring their unaccounted income as agricultural income by purchasing agricultural land specially for the purpose.
Loan-waiver to farmers is big gimmick and pushing them again in Mahajan-system because after a loan-waiver, banks cannot finance them in future. Also such loan-waivers are limited only for previous years where many of farmers have already repaid loans. But political gimmickry stops many other affording ones to repay loans who are capable of repaying loans.
MADHU AGRAWAL