Massive farm loan waiver upsets Yogi's fiscal math

UP defers 7th Pay Commission payout of Rs 7,000 crore

The massive farm loan waiver amounting to Rs 36,000 crore in the current fiscal has virtually upset the fiscal mathematics of the ruling Yogi Adityanath government in Uttar Pradesh.

While, the ruling Bharatiya Janata Party (BJP) dispensation had made provisions in the Annual Budget 2017-18 to fulfill its flagship promise of waiving small and marginal farmers’ loans, the big outlay has literally squeezed the state’s finances to nothing.

The UP tax kitty has also been facing teething troubles owing to the Goods and Services Tax (GST), which has further compounded the challenge of matching outlays with revenues. As a result, the state