While some experts believe that waiving of farm loans will not address the real problems driving farmers to suicide, others argue that it is impractical in other ways too as the amount involved - Rs 53,000 crore – is far too big and could hamper all developmental work both in the city and rest of the state.
Prof M Sriram, visiting faculty, Centre for Public Policy, Indian Institute of Management, Bengaluru says that given the current financial condition of the state it is not in a position to waive off farm loans to the tune of Rs 53,000 crore.
“No government has waived off loans of this magnitude. Mr Kumaraswamy has no source to mop up such a huge amount. The only way could be for him to increase taxation on fuel, stamp duties, excise and motor vehicles. But Karnataka is already a high tax paying state and it cannot stretch this too much,” he reasons.
With reality sinking in, Chief minister Kumaraswamy met Prime Minister Narendra Modi recently to seek his help in implementing the loan waiver , but this attempt bore little fruit and he is now left with the daunting task of making good his promise despite the huge financial implications involved. He has indicated in the past that the waiver will be done in phases and Karnataka will learn from the experience of other states that have waived off farmers’ loans. But with the situation differing from state to state , it remains to be seen whether he will be able to pull it off.
