Comments on: Budget and industry moguls

By: Pune Builders

Pune Builders — Mon, 03 Mar 2008 07:36:34 +0000

I don’t believe this budget can actually sustain itself .How can we have retail giants like WalMart entering the country and farmers being released from their debts at the same time .The budget should have focused on more infrastructure and amenities for these farmers so that retail industry does not directly impact them.

By: Budget | DesiPundit

Budget | DesiPundit — Sat, 01 Mar 2008 03:41:49 +0000

[...] A short post but RC hits the nail on the head, [...]

By: realitycheck

realitycheck — Fri, 29 Feb 2008 09:37:47 +0000

Just in :

All loans taken by farmers having less than 5 acres (2 hectares) are forgiven. The total liability is 60,000 Crores. No restructuring, just a blanket waiver.

The reality :

1. Farmers who paid back dutifully look like complete idiots now.

2. All farm loans including for capital assets like pumps, tractors are forgiven. Does it make more sense to repo the assets instead ?

3. Only loans from banks are waived. Most farmers in suicide belts get their loans from private agents (read larger farmers).

4. Many large farmers / politicians having benami holdings upto 5 acres can simply laugh all the way to the bank.

This waiver will result in a complete breakdown of the fragile rural credit system.

Why ?

The farmers who paid back fully or partially have now learnt their lesson.