Letters: Dangerous precedent

With reference to the editorial, “Avoid blanket loan waivers”, one of the poll promises made by the Bharatiya Janata Party ahead of the Uttar Pradesh elections was the waiver of loans taken by small and marginal farmers. The editorial rightly says that such a poll promise sets a dangerous precedent, one that is still being encouraged.

Banks are already saddled with bad debts. Promises of loan waivers by politicians and political parties send out the wrong message to borrowers. Loan waivers at periodic intervals embolden borrowers to desist from repayment in the hope of write-offs in the future. Whether the state government or the central government finances this waiver is a moot point. The bottom line is that taxpayers’ money is being squandered.

In the run-up to elections, freebies are bandied about by political outfits. Parties have won elections swaying voters by such offerings. To make good their poll promises, money from the exchequer is used. There should be a law that forbids the fulfilling of poll promises using funds from the government coffers. 

Let the political party pay from its pocket to fulfil poll promises. When this happens, grandiose promises won’t be made to sway people.

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