Wednesday, March 12, 2008
The yearly circus, the Budget, is over and economists and commentators are exercised over the 600 billion rupees loan waiver for farmers with small holdings. People are debating whether this will win the coming general elections for the Congress party and whether this will halt a spate of suicides by indebted farmers. Only one commentator pointed out that this was an immoral act because it rewards people who have not repaid their debts, encourages all farmers to refuse to repay loans and wait for future amnesties. In short it will make every farmer a thief and will make rural banks reluctant to lend to farmers. Also it does nothing to help people who have borrowed from money lenders and used their land as collateral. The main reason why farmers become poor is because they produce large number of children. Thus if you own 10 acres and have five children then each child inherits only two acres. Within a couple of generations each family is dependant on little plots insufficient to feed their needs. Instead of rewarding honest farmers with small families the Minister is misusing taxpayer money for cynical electioneering. The Congress party is shamelessly holding large rallies trumpeting the loan waiver as a service to poor farmers. Had they given their own money I would also have aplauded but charity with our money is surely disgusting. No sharam, no izzat.
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