The swiftness with which the Yogi Adityanath government in Uttar Pradesh has presented a blueprint for waiving farmers’ debt has put pressure on the governments in Punjab, Maharashtra and Tamil Nadu to do something similarly dramatic. In the passionate bid for power politicians promise anything. Reality bites on gaining office. Capt Amarinder Singh has cleverly bought two months’ time by telling an expert group to study the issue. But the alacrity displayed by the Yogi, considered inexperienced in governance, will not allow the congress government in Punjab to prevaricate beyond a point.Like other states where farmer distress is glaring, Punjab had expected a Central bailout. With expectations belied, the Amarinder government is now struggling to come to terms with the enormity of the financial challenge, which includes unpaid bills amounting to Rs 17,000 crore, an off-budget spending of Rs 25,000 crore by the previous regime, the state debt shooting to 1.83 lakh crore and the pay commission report awaiting implementation in a not too distant future, apart from the litany of populist promises thoughtlessly made in the passion to win. Opposition and public pressure will mount once the honeymoon period is over.    None in the political class says the unpretty things that need to be said about the politics of loan waivers. The SBI chief has done it from the banks’ angle: “Today, the loans will come back as the government will pay for it but when we disburse loans again then the farmers will wait for the next election expecting another waiver.” Bank credit to farmers would not take long to dry up as good borrowers would stop paying back on time and farmers would once again be at the mercy of private lenders. The cycle of taking loans and seeking a waiver would kick in again, while the taxpayer would be asked to pay for the political largess. Money meant for education and healthcare will get diverted. Farmers need help but only in buying inputs cheaper and getting a higher price for their produce.

Yogi’s farm loan waiver puts Capt under strain

ribune News Service

Chandigarh, April 5

After Yogi Adityanath-led UP Government waived Rs 36,359-crore loans to farmers, all major political parties and farm unions have begin mounting pressure on Punjab CM Capt Amarinder Singh to fulfil the similar promise he had made to the state’s farmers before the Assembly elections in February.Saying the CM was deviating from the vital promise and trying to pass the buck to the Centre, senior AAP leader Sukhpal Singh Khaira said, “It appears that instead of taking the responsibility to waive the farmers’ loans himself, he recently led a delegation to meet Prime Minister Narendra Modi on the matter. By doing so, the CM is trying to skirt the issue and run away from his election promise.”“Now that the UP CM has waived the farm loans, Capt Amarinder Singh must follow him and take the decision in the next Cabinet meeting. The least that he can do immediately is to write off the loans of small and marginal farmers pending with the cooperative banks and societies of Punjab. This is a decision that he can independently take and does not have to approach any nationalised bank or any other authority,” Khaira added.On the other hand, SAD president Sukhbir Singh Badal urged Congress vice-president Rahul Gandhi to direct Amarinder to waive all farm loans immediately.“Rahul has applauded the loan waiver decision of the UP Government and called for its replication in the other states. Rahul should lead by example and ask all Congress-ruled states, including Punjab, Himachal Pradesh and Karnataka, to waive farm loans,” Sukhbir said.Sukhbir said Rahul was morally bound to intervene as the state Congress had promised to implement a one-time complete farm loan waiver scheme in its manifesto that bears his stamp.“The Punjab Congress distributed lakhs of forms to farmers who duly filled them and submitted them to the party. Now these farmers are waiting for the much-needed relief,” Sukhbir added.Bharatiya Kisan Union (Rajewal) president Balbir Singh Rajewal said, “Our opinion is that the government should be given 60 days it sought to devise the mechanism of the loan waiver. If Amarinder’s government fails to fulfil its promise, then we will launch an agitation from July.”

Will fulfil promise’

• A government’s spokesperson on Wednesday said, “We are committed to waive debt of the farmers. A committee is being constituted to look into the entire issue and suggest measures. The members of the committee will be notified in a day or two. A budgetary provision for the debt waiver would be made.”