My compliments for the interesting and forthright editorial, “Ballooning state debt” (July 20). The Uttar Pradesh government’s move to waive farmers’ loans to the tune of Rs 36,000 crore was a disastrous step. One didn’t have to be an economist or an astrologer to predict that this would be followed by a spate of waivers in other states. Punjab and Maharashtra have followed suit and more states are perhaps waiting in the wings.
Loan waiver is akin to one-time firefighting. It can’t solve the problems of farmers. It can’t improve their incomes. Several expert committee reports have prepared blueprints for improving
