Hello friends. I khushboo prahladka is here to give a micro-presentation on the consequences of waiver of farmers loan as per Budget 2008, and whether the loan write-offs had a direct impact on the inflation of the country considering the inflationary trends in the country post-write off
The question that still looms large is what we should do about the indebtness of farmers??
Will the Budget 2008 translate into actual relief for farmers and help address their
One of the highlights of India's Union Budget 2008-09, announced on February 29,
was the largest ever debt waiver and relief for small and marginal farmers, to the tune
of Rs 60,000 crore.
Announcing the budget in Parliament, Mr. P Chidambaram said that after carefully weighing the pros and cons of debt waiver and having taken into account the resource position. He place before the house, a scheme of debt waiver and debt relief for funds.
All agricultural loans disbursed by
1. scheduled commercial banks,
2. regional rural banks and
3. co-operative credit institution
upto march 31,2007 and overdue as on December 31,2007 will be covered under the scheme.
For marginal farmers that are holding upto 1 hectare and small farmers 1 to 2 hectare i.e for marginal farmers and small farmers there will be a complete waiver of loans…
For all other farmers, there will be a one-time settlement for the outstanding debt, whereby 25 per cent will be written off if the farmer repays 75 per cent.
The scheme will be completed by June 30 ’2008.
The loan waiver scheme is expected to benefit 30 million small and medium farmers
and covered loans worth Rs 50,000 crore in total -- that's 4% of the total loans of commercial banks.
One million more farmers will benefit from a 25% rebate against the
one-time settlement of loans, something that will cost an additional Rs 10,000 crore.
But the question is will the farmers really benefit out of the quoted proposal??