Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
$response = object(Cake\Http\Response) {

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</span></span></code>
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&lt;em&gt;Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The Bharatiya Janata Party (BJP) won the 2017 state elections in Uttar Pradesh with a thumping majority and once again, the state government has a debt-waiver package ready to be implemented. The BJP&amp;rsquo;s electoral manifesto had committed to write off loans of small and marginal farmers, which would approximately cost the government Rs37,000 crore, according to initial reports. Intervention in the credit market through household debt relief has been a fiscal policy adopted by many governments both at the Central and state level for many years.&lt;br /&gt;
&lt;br /&gt;
The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption.&lt;br /&gt;
&lt;br /&gt;
Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets

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&lt;em&gt;Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
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&lt;br /&gt;
The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption.&lt;br /&gt;
&lt;br /&gt;
Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets

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                <div align="justify">-Livemint.com<br /><br /><em>Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets<br /></em><br />The Bharatiya Janata Party (BJP) won the 2017 state elections in Uttar Pradesh with a thumping majority and once again, the state government has a debt-waiver package ready to be implemented. The BJP&rsquo;s electoral manifesto had committed to write off loans of small and marginal farmers, which would approximately cost the government Rs37,000 crore, according to initial reports. Intervention in the credit market through household debt relief has been a fiscal policy adopted by many governments both at the Central and state level for many years.<br /><br />The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption.<br /><br />Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.<br /><br />Please <a href="http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html" title="http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html">click here</a> to read more. <br /></div>               </font>
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</span></span></code>
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-Livemint.com&lt;br /&gt;
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&lt;em&gt;Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The Bharatiya Janata Party (BJP) won the 2017 state elections in Uttar Pradesh with a thumping majority and once again, the state government has a debt-waiver package ready to be implemented. The BJP&amp;rsquo;s electoral manifesto had committed to write off loans of small and marginal farmers, which would approximately cost the government Rs37,000 crore, according to initial reports. Intervention in the credit market through household debt relief has been a fiscal policy adopted by many governments both at the Central and state level for many years.&lt;br /&gt;
&lt;br /&gt;
The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption.&lt;br /&gt;
&lt;br /&gt;
Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.&lt;br /&gt;
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Please &lt;a href=&quot;http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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&lt;em&gt;Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets&lt;br /&gt;
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&lt;br /&gt;
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&lt;br /&gt;
Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets

The Bharatiya Janata Party (BJP) won the 2017 state elections in Uttar Pradesh with a thumping majority and once again, the state government..."/>
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                <strong>The hazards of farm loan waivers -Tanika Chakraborty and Aarti Gupta</strong></h1>
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                <div align="justify">-Livemint.com<br /><br /><em>Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets<br /></em><br />The Bharatiya Janata Party (BJP) won the 2017 state elections in Uttar Pradesh with a thumping majority and once again, the state government has a debt-waiver package ready to be implemented. The BJP&rsquo;s electoral manifesto had committed to write off loans of small and marginal farmers, which would approximately cost the government Rs37,000 crore, according to initial reports. Intervention in the credit market through household debt relief has been a fiscal policy adopted by many governments both at the Central and state level for many years.<br /><br />The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption.<br /><br />Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.<br /><br />Please <a href="http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html" title="http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html">click here</a> to read more. <br /></div>               </font>
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&lt;em&gt;Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The Bharatiya Janata Party (BJP) won the 2017 state elections in Uttar Pradesh with a thumping majority and once again, the state government has a debt-waiver package ready to be implemented. The BJP&amp;rsquo;s electoral manifesto had committed to write off loans of small and marginal farmers, which would approximately cost the government Rs37,000 crore, according to initial reports. Intervention in the credit market through household debt relief has been a fiscal policy adopted by many governments both at the Central and state level for many years.&lt;br /&gt;
&lt;br /&gt;
The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption.&lt;br /&gt;
&lt;br /&gt;
Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.&lt;br /&gt;
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Please &lt;a href=&quot;http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
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Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.&lt;br /&gt;
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                <strong>The hazards of farm loan waivers -Tanika Chakraborty and Aarti Gupta</strong></h1>
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                <div align="justify">-Livemint.com<br /><br /><em>Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets<br /></em><br />The Bharatiya Janata Party (BJP) won the 2017 state elections in Uttar Pradesh with a thumping majority and once again, the state government has a debt-waiver package ready to be implemented. The BJP&rsquo;s electoral manifesto had committed to write off loans of small and marginal farmers, which would approximately cost the government Rs37,000 crore, according to initial reports. Intervention in the credit market through household debt relief has been a fiscal policy adopted by many governments both at the Central and state level for many years.<br /><br />The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption.<br /><br />Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.<br /><br />Please <a href="http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html" title="http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html">click here</a> to read more. <br /></div>               </font>
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-Livemint.com<br />
<br />
<em>Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets<br />
</em><br />
The Bharatiya Janata Party (BJP) won the 2017 state elections in Uttar Pradesh with a thumping majority and once again, the state government has a debt-waiver package ready to be implemented. The BJP&rsquo;s electoral manifesto had committed to write off loans of small and marginal farmers, which would approximately cost the government Rs37,000 crore, according to initial reports. Intervention in the credit market through household debt relief has been a fiscal policy adopted by many governments both at the Central and state level for many years.<br />
<br />
The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption.<br />
<br />
Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.<br />
<br />
Please <a href="http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html">click here</a> to read more. <br />
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<em>Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets<br />
</em><br />
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<br />
The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption.<br />
<br />
Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss.<br />
<br />
Please <a href="http://www.livemint.com/Opinion/8tQu6sZVRwnRhMUNJBhiIN/The-hazards-of-farm-loan-waivers.html">click here</a> to read more. <br />
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Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets

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The hazards of farm loan waivers -Tanika Chakraborty and Aarti Gupta

-Livemint.com Research provides evidence that a blanket farm loan waiver scheme is detrimental to the development of credit markets The Bharatiya Janata Party (BJP) won the 2017 state elections in Uttar Pradesh with a thumping majority and once again, the state government has a debt-waiver package ready to be implemented. The BJP’s electoral manifesto had committed to write off loans of small and marginal farmers, which would approximately cost the government Rs37,000 crore, according to initial reports. Intervention in the credit market through household debt relief has been a fiscal policy adopted by many governments both at the Central and state level for many years. The support for debt-waiver programmes comes from the theoretical argument that a high level of outstanding debt reduces the incentive for the debtor to exert effort to repay. In such a situation, a policy of debt forgiveness could induce the optimal level of effort from the debtor and maximize repayment. However, repeated debt-waiver programmes might alter the expectations of debtors about enforcement of future credit contracts. This, in turn, could adversely affect the level of effort. For instance, consider the case of debt-waiver programmes in the context of agricultural credit markets wherein farmers obtain loans against collateral, land in most cases, which are freed once the loans are repaid. If farmers expect governments to intervene and free their collateral from banks, in case of default, they are likely to reduce productive investments and spend more on consumption. Past empirical research analysing the 2008 nationwide Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) found that it led to a delay in loan repayment, increase in defaults, and no significant productivity gains. In spite of the evidence against the effectiveness of the ADWDRS programme, many states continue to announce their own state-level debt-waiver schemes. It is possible that state-level debt-waiver schemes could address state-specific indebtedness problems that a generic national-level programme like ADWDRS could miss. Please click here to read more.