Possibility of another farm loan waiver scheme unlikely

The UPA's flagship scheme that returned them to power in 2009 is under the scanner. The CAG report on the farm loan waiver scheme has found major discrepancies. Apart from a finance ministry inquiry, the repeat of the scheme is perhaps unlikely, reports CNBC-TV18.

Manmohan Singh, Prime Minister said in the Parliament, "If there are any irregularities, I assure we will take stringent action against the defaulters."
A CAG report pointed out irregularities in the Rs 52,500 crore scheme announced by P Chidambaram in Budget 2008-09. The report claimed that over 6800 beneficiaries had taken loans for even buying vehicles or building houses, while 1,257 eligible farmers were turned down.
The principal opposition party - the BJP has predictably sought a debate on the matter.
There is perhaps too little political capital in the CAG report, but experts feel that the audit observations coupled with the fiscal challenges virtually rule out the possibility of a second farm loan waiver. That task may well be left to the Food Security Bill.