Letters: Loan waiver effect

Good political decisions will end up hurting our economics

This refers to the editorial “Bad timing”. Not only is the timing bad but even this decision is bad — on state finances as well as overall credit discipline. Telangana, Andhra Pradesh, Uttar Pradesh and Maharashtra have waived off farm loans to the tune of Rs 100,000 crore. It is a very wrong precedence. Not long back State Bank of India Chairman Arundhati Bhattacharya had said if such a waiver were granted it would disrupt the credit discipline among farmers across the country.
 
I agree with your concerns that states finances are any how in a bad shape and this burden will further drag them down. The Seventh