Maharashtra: No wise CM, FM will agree to loan waiver when govt coffers are empty, says Jayant Patil

Discussing the politics, economics and arithmetic of crop loan waiver both at the Centre and in Maharashtra, while speaking to The Indian Express, Patil put across the challenges for any government having to deal with financial constraints. “The conservative estimate of crop loan waiver would work out to Rs 25,000 cr to Rs 30,000 cr approximately. Now, no wise chief minister or finance minister will give permission for the crop loan waiver. The task has become more challenging for the present government that has miserably failed in fiscal prudence, thus reflecting poor financial management,” said Patil.

He added: “The overall budget spending shows 47 per cent, which means there is an undeclared cut in force. The series of mega-projects being pursued by Chief Minister Devendra Fadnavis in multiple sectors, like infrastructure, also makes us wonder how they would mobilise the funds.”

Speaking about the socio-politics behind the Opposition’s demand for a crop loan waiver during the ongoing budget session, Patil justified it. He said: “Our decision is not politically driven. It is our concern to bring immediate relief to the farmers across rural Maharashtra. In the last three to four successive years, farmers suffered due to drought. Last year, we had a good monsoon. There was good crop production. However, farmers’ earnings were badly affected because of the demonetisation policy imposed from November 8, 2016.”

Patil added: “Farmers were forced to sell their vegetables, fruits and crops at much lower prices. Except for cash crops like sugarcane, all other crops fetched lower prices causing revenue loss to farmers.”

Taking a strong objection to the government’s argument that the loan waiver had helped district cooperative banks and not farmers in the past, he said: “I am not asking money for banks. The government can always directly transfer the cash into farmers’ accounts.”

The NCP leader said: “If Prime Minister Narendra Modi can promise loan waiver to farmers in Uttar Pradesh, what stops the government from taking the decision in Maharashtra? This is our basic question at a time they boast of a robust economy, which is not the case. Therefore, as I said in the beginning, unless any state has surplus money it would be a difficult task to waive the crop loans completely.”

Reminding of former Union agriculture minister Sharad Pawar’s 2008 decision after discussion with then prime minister Manmohan Singh on a crop loan waiver of Rs 71,000 crore for the entire country, Patil said, “There were no immediate elections. But the UPA government still went ahead with the decision to bring relief to farmers.”

He added: “Today, the state government says it is not against loan waiver but will take a decision (on that) at an appropriate time. What does it mean?”

Commenting on the Shiv Sena trying to take credit for the demand for crop loan waiver, Patil said: “They are a confused party. On one hand they are enjoying power in the government, and on the other they are trying to show that they are an Opposition party.”

Taking a dig at the Sena, he said: “Now, all Opposition parties had taken a decision to protest at the footsteps of Vidhan Bhawan on the crop loan waiver issue. But just to show that they are different, the Shiv Sena sat a few feet away at the footsteps of Chhatrapati Shivaji’s statue. A section was protesting against the government and the other half is participating in the government. People will soon see their double standards.”