New Delhi: As a matter of policy, the central government in its attempt to maintain fiscal prudence and parity among states is not inclined to bear the burden of any farm loan waiver.
The Yogi Adityanath government in its first cabinet meet approved its implementation, triggering a spate of demands in others BJP ruled states like Maharashtra for a similar bailout to farmers in drought hit districts of the state.
In UP, the government however has had to generate its own resources for the scheme which would put an additional burden of more than thirty thousand crores on the exchequer. This would be done by issuing kisaan bonds.
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In the case of Tamil Nadu as well, the government concedes that some districts are certainly reeling under severe agrarian distress. Sources in the government indicate that principle demand of the Tamil Nadu farmers protesting at Jantar Mantar in Delhi was a loan waiver. A request to this effect was in-fact communicated to the government through informal sources - with a state politician playing the interlocutor.
We have done our bit and all the central help has been disbursed. On loan waiver, however, only the state government can take a call and generate its own resources for the purpose,” says a source in the government.
In-fact, the centre has attempted to empirically assess recent examples of loan waivers implemented by states as a part of the poll promise to electorates. “The current TDP regime in Andhra Pradesh, took eighteen months just to frame rules to implement the scheme which was part of their election manifesto. The signs are not very encouraging,” says a minister.
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