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LATEST NEWS UPDATES | Why income support, not farm loan waiver, may be better for all -Surojit Gupta

Why income support, not farm loan waiver, may be better for all -Surojit Gupta

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published Published on Dec 16, 2018   modified Modified on Dec 16, 2018
-The Times of India

NEW DELHI: The election results in which BJP lost three key states have once again pointed to the agrarian crisis and triggered demands for loan waivers. Pressure on the Centre has intensified ahead of the 2019 polls and comes against the backdrop of a tight fiscal situation.

The government has committed itself to meet the fiscal deficit target of 3.3% of GDP. In the aftermath of several states unveiling waiver schemes, finance minister Arun Jaitley had made it clear last year that the Centre won’t be part of any such plan and states will have to bear the cost from their resources.

Since 2014 seven states have unveiled loan waivers totalling nearly Rs 182,802 crore. Agriculture economist Ashok Gulati reckons that the total farm loan waiver may touch Rs 4 lakh crore in the run-up to the general elections in 2019 as other states join the fray.

Congress, which has won the Chhattisgarh state assembly polls, has vowed to waive farm loans as soon as it is sworn in. A similar promise has been made in neighbouring Madhya Pradesh.

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The Times of India, 14 December, 2018, https://timesofindia.indiatimes.com/india/why-income-support-not-farm-loan-waiver-may-be-better-for-all/articleshow/67085004.cms?fbclid=IwAR1gD_tX_Lm4e2LNevQzVfA


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