Clever waiver

• By writing off a massive Rs 60,000 crore of farmers’ loans, Finance Minister P. Chidambaram may have sent a popular message but set a bad precedent. Honest farmers who were foolish enough to pay back their loans in time under very difficult circumstances will feel cheated. They could also have waited or defaulted to reap the benefits now promised.

Writing off loans, whatever the reason, is bad in principle and a breach of trust and contract. This loan waiver also amounts to ‘robbing Peter and paying Paul’, in that the amount is going to be from the kitty of honest taxpayers. If you can write off farm loans then why not consider entrepreneurs who boldly set up small manufacturing or business ventures and failed? They should also be protected under an amnesty system.

Thus this loan waiver is a clear signal for an early general election. The Congress party, the main constituent of the UPA coalition, is buffeted by its allies and unable to go forward; it thinks this is the right time to get a fresh mandate from the people.

Hard math

• Indians everywhere are scared of the budget every year. But this year, with all the loan waivers and the freebies, it is the finance minister who should worry most about how to pull it off!

Hyde facts

• Dhruva Jaishankar is heroic in his advocacy of US interests in the Indo-US nuclear agreement (‘Hiding behind Hyde'). I would like him to respond to the following questions. He says it is easier for the US to amend their law to accommodate the “two countries’ intentions” than to re-negotiate the 123 agreement. Can he give some examples from recent US legislative history where the US changed its law?

... contd.