One of the important point to think, whether the decision of Farm Loan Waiver by BJP Government in UP is good or bad for UP and finally UP People and ultimately India???
There are several ways of thinking. What I am thinking is that, it should obviously be done, but taking several filters and limitations. Why and how according to me is detailed in the following para.
Farmers and Human Resource – Most important point, do you think all loans were really for farming purposes? Since, it is one of the cheapest loan, several people even having no farming land have taken loan on the name of farming. Next, loan should be given when due to some natural reasons, crops have been destroyed or anything like that. But, rarely there is any reason like that. Don’t you think it is making them more lazy to make effort. If the reason of crop loss is real and satisfactory, then obviously, loan should be waived off. If due to natural reasons, crop price fall, storage issues, etc, they were not able to repay the loan, then it is their right. Just waiving all the loan will obviously make them effortless which obviously is loss of Indian GDP and Indian Human Resource. Just take the example of Bihar. Here, every BPL family gets sufficient amount of serials to eat free of cost since last few years. The difference which came should be noticed with a very investigating eye. Earlier, they used to work in factories, agricultural fields, construction sites. Not all of them, but some of them are not doing anything now, just sitting idle because they are being fed by the free deliverables. It is obviously good as per their thought, but is it really making a healthy and resourceful India. No and never. If same here all loans are waived, why will they make effort, just take farming loan, make some excuse and sit on strike for loan waiver. Done and so easy for them, but who is getting benefited, no one. Neither those farmers, neither taxpayers, neither banks, neither GDP, neither Indian growth.
Banks – One of the main player of this game. On and average, SBI is major victim here. Mostly such loans are issued by SBI and its subsidiaries. What will happen to their reputation and their working. Loan has to be maintained with a good relationship between bank and customer. But, it totally disrupts the credit of banks. Now, firstly, the loan which now government has to pay is not credited directly and the shit which happens in functioning and records of banks takes a long time to settle.
Government – Now, the most important part, the final victim or the one most benefited. In one way, the government is in loss as it has to pay the total loan amount to banks which becomes a major percentage of total revenue. On the other hand, government uses it as a tool to win the election.
Now, the question comes, who got benefited and who is in loss. Whether, the one whose loan was waived is now in good condition. Whether their economic condition improved. Donation to beggars can never lead to their economic growth. As per RBI Ex-Governor, as per last fifty years, not a single farm loan waiving has lead to economic growth or well being condition of the farmers.
So, overall, we cant’ say that farm loan waiver should not be done, because if the natural reasons has led to the crop loss, then there is no any solution to the problem, loan should be waived off. But, in other cases, it has be done very carefully. Because, it is taking down the human resources and the economy of the farmers, banks, tax payers and ultimately the nation.