The Hindu Business Line : Moneylenders are happy

The 2008 Budget announced by the Finance Minister, Mr P. Chidambaram, has something for everyone. Small and marginal farmers take a major share of the pie in the form of loan waiver amounting to Rs 60,000 crore; the salaried are benefited in the form of a higher take-home pay (lesser tax deductions); pharma, auto and some sectors enjoy the benefit of reduced excise duties and, above all, private moneylenders eye an increased cash flow into their kitties. With the loan waiver coming, moneylenders see more money in the hands of hapless farmers, the former can intensify their efforts at recovering interest payments, and lend more at usurious rates unabatedly, even as bankers may be reluctant to lend to farmers. The Finance Minister has been generous with the fond hope that putting more money in the hands of public will drive consumption and, hence, growth.

V. Maruthi Rao, Manipal

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