Governments Must Be Prudent - Katari Srinivasa Rao

Most political parties all over the country have been cynically indulging in competitive populism with an eye on garnering votes in elections and coming to power.

They also resort to luring voters with money and liquor and appeal to their primordial loyalties based on caste and religion, region and language.

The situation in Telangana and Andhra Pradesh is no different. Both, the Telangana Rashtra Samiti and the Telugu Desam, that have come to power in Telangana and AP respectively, not to mention the Congress and the YSR Congress that were trounced in both states, have been liberal in offering short-term sops.

The entire public and political discourse is apparently centred on these sops. In the end, it seems that the public got the same old politics even in the new states!

Take for instance the promise of both the TRS and the TD to waive farm loans. Agriculture has been in a crisis for a long time as is evident from hundreds of farmers ending their lives unable to repay their debts.

Instead of addressing the basic problems afflicting the sector, the ruling parties have offered to waive farmers’ loans.

They forget that the UPA government’s waiver of farm loans worth Rs 65,000 crore did not put an end to farmers’ suicides.

When resources are limited, governments have to use them with prudence and not squander them away on populist, short-term and unproductive schemes.

If those who have defaulted in repaying bank loans are extended loan waiver, it amounts to punishing those who have honestly repaid the loans. As the State Bank of India chairperson put it, farmers in future will not be eager to repay loans in anticipation of another loan waiver.

Have the political parties thought of the repercussions of a loan waiver on the banking system?

The governments in both state cannot fulfil the aspirations of people if they fritter away precious resources on unproductive schemes.

The Loksatta has all along argued that a government has to enable people to lead a life of dignity by standing on their own feet, and not by depending on crumbs thrown at them.