Sir, With reference to the Union budget 2008-09, it has rightly been called an aam aadmi budget. P Chidambaram has done well in raising the exemption limit for all categories of income-tax payers bringing some much needed respite for the salaried class. Another important aspect of the budget is the FM’s decision to waive-off farm loans worth Rs 60,000 crore. This is sure to benefit a huge number of small and marginal farmers; despite reports pouring in that less than half the Vidarbha farmers are going to benefit from the loan waiver.
While the loan waiver has come as a huge boon to farmers, the burden will definitely be passed on to tax-payers in the form of more indirect taxes since this deficit has to be recovered by 2010. Chidambaram has also set a dangerous precedent wherein farmers who borrow loans and who are unable to repay them would expect the loans to be waived-off when a certain limit is reached.
Ashwin Ramesh
Bangalore
Money lenders
Sir, The Union budget has cut the jacket of jawans who are serving 24 hours duty in inclement weather and guarding our frontiers. For them our finance minister has allotted only Rs 1,05,000 crore which is not enough for the upliftment of manpower and equipment. The move to write off farm loans worth Rs 60,000 crore will not stop the suicide of farmers who have small holdings below 5 acres, because they have taken loans from money lenders. The government had earlier announced a package of Rs 17, 000 crore to distressed farmers of four states: Andhra Pradesh, Karnataka, Maharastra and Kerala, but the number of suicides have not come down.
P Peer Khan
Bangalore
Questions
Sir, It is not clear what the common man will get from the Union budget. Will he get the necessary items at lower price? Will his income increase? Will he progress from his mud house? Will the number of beggars come down? Will the poor fellows be able to give proper education and training to their children? Finance Minister P Chidambaram must give an answer to all these questions in the Parliament to inform the citizenry.
Dalip Singh Wasan
Bangalore
Ground realities
Sir, This refers to the news article, Loans needn’t be repaid (DH, Mar 2). Union Agriculture Minister Sharad Pawar on Saturday has made a statement that those farmers who have taken loans from moneylenders doing business illegally need not pay back. It is very easy to say so, but the ground realities are entirely different. Moneylenders would want their pound of flesh come what may. He will coerce the person in such a sly manner to get back the loan to ensure that the borrower cannot go scot-free.
Mandikal S Ananda Rao
Bangalore
Govt help
Sir, The farm loan waiver may have given short term relief to some hapless farmers, but in the long run it is detrimental. The farmer community is the backbone of our society. Most would not like to remain indebted. Their pride guides them to pool all resources to repay loans. Instead good power supply, irrigation, quick sale of their crops, good roads and better living amenities would have improved the farmers' productivity and their ability to repay loans. The government could therefore have used the money that they are planning to write off for this purpose.
B N Gangadhar
Bangalore
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Another side of farm loan waiver
