Farm Loan Waiver Dismantle CAG

The CAG has pointed out irregularities in the waiver of loans to Agricultural sector. He points out that the Bureaucrats have siphoned off the money. Irregularities in Waiving of Agricultural Loans. 1.Those eligble were loan waiver were not considered. 2.Those ineligible were granted loans. 3.Banks have diverted Funds received for the Waiver of the loans…

Ramanis blog

7 Mar 2013

2 minutes

Agricultural Loan waiver, CAG, Comptroller and Auditor General of India, Corruption, Farmer, India, Loan, Manmohan singh, United Progressive Alliance, Waiver

The CAG has pointed out irregularities in the waiver of loans to Agricultural sector.

He points out that the Bureaucrats have siphoned off the money.

Irregularities in Waiving of Agricultural Loans.

1.Those eligble were loan waiver were not considered.

2.Those ineligible were granted loans.

3.Banks have diverted Funds received for the Waiver of the loans to Micro Finance Institutions.

5.Disbursement Accounts were tampered with.

6.The Institutions made false claims for reimbursement from the Government.

7.Monitoring was not effective.

These points were proved with documents.

The the Prime minister ManMohan Singh declares that an enquiry is being ordered and if some one is found to be guilty, he will be punished.

He is an honorable Man.

If the Reports of the CAG are not reliable, dismantle it.

The CAG Report .

Link in pdf.

http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_3/Exe_Summ.pdf

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The report by the Comptroller and Auditor General of India, which was tabled in Parliament Tuesday, raised serious concerns over the scheme after it found lapses and errors in 22% of the 90,576 accounts it audited.

The audit body also alleged that in 2,824 cases there was evidence of tampering and alteration of records, while in 4,826 cases farmers weren’t given due benefits.

A majority of India‘s farmers own small holdings and take bank loans to buy fertilizers and machinery during the planting season. However, as more than 60% of the lands is rain-fed, erratic monsoons often lead to crop failure, forcing farmers to default on loans.

The government launched an agricultural debt waiver and debt relief scheme in 2008 to address farmers’ difficulties in repaying loans on time. It then estimated that about 40 million farmers would benefit from the scheme. In the last four financial years, the government has waived more than 520 billion rupees ($9.5 billion).

Many economists and agricultural analysts had criticized the scheme, saying it was merely a populist move by the United Progressive Alliance government to attract voters ahead of the 2009 general elections.”

http://online.wsj.com/article/BT-CO-20130305-703283.html