In Andhra Pradesh, Chief Minister Chandrababu Naidu announced an across the board loan waiver for farmers during the election campaign and came to power against all expectations.
Similarly, KCR in Telangana offered a similar incentive as he did not want to give even the slightest opportunity to the Congress.
But they diluted their promises heavily after coming to power by stipulating various conditions to make farmers eligible for a loan waiver. And in Uttar Pradesh, the BJP too had promised a unilateral loan-waiver to farmers.
Yogi Adityanath signed the loan waiver file which would cost the exchequer nearly Rs 37,000 crore. However, conditions have been laid down here as well.
Loans of up to Rs 1 lakh taken by small and marginal farmers, with land holdings of less than five acres, until March 31, 2016, would be waived.
These populist measures hit the economy badly but political parties are increasingly resorting to such tactics and later diluting their spirit.
Agriculture income is exempt from income tax in the first place. Now if such huge loan waivers are given, why would the hard-working middle –class people, the only segment that pays taxes regularly find an incentive to do so?
In short, these people are paying taxes which are then made use of by politicians to come to power. Something is definitely wrong here!
YS Jagan must be regretting now his decision not to have made a similar offer during his campaign trail.
