My View on "Special category financial profligacy":
When Mr Naidu made this public pre-elections as part of Election Manifesto, why did not the RBI and IBA raise their objection to this? Second, why did not the Election Commission raise its objection by asking the parties to show resources for fulfilling such promises? Several other Agriculture States like Tamilnadu, Karnataka, Kerala, Punjab, Orissa (where floods and cyclones are as recurrent or more recurrent than AP), Haryana and UP, or for that matter resource-starved West Bengal as well, did not indulge in this luxury of loan write-off by the State in spite of continuing farmers suicides. What the farmers want is more loans at cheaper interest rates and cross holding of risks through insurance mechanism and market stabilization mechanism. Compromises became promises and they became noose around the neck of the State. Now that RBI made its stand clear, it should pave the way for a solution.
- Yerram Raju
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