Maha Vikas Aghadi govt in Maharashtra could focus on farm debt waivers

The state govt can go for a waiver of Rs 50,000 crore spread over a couple of years, said Macquarie

The change of guard in Maharashtra could lead to large farm debt waivers and projects getting stalled, warned Macquarie.

Farm distress and debt waivers were part of the election campaign by the Opposition parties in Maharashtra against the ruling Bharatiya Janata Party (BJP) government. 

Now, an alliance of the Shiv Sena, the Nationalist Congress Party (NCP) and the Congress, is set to form the government and expected to address the farm distress. And, they will have adequate fiscal space to do so, Macquarie estimated. 

“Farm loan waiver can potentially be the first order of the business of the new government,”