NEW DELHI: RJD Rajya Sabha MP Sanjay Yadav on Wednesday alleged that the Modi government waived loans worth Rs 26 lakh crore for industrialists, during a discussion in Rajya Sabha on the Insolvency and Bankruptcy Code (Amendment) Bill.
"To benefit its capitalist friends, the government has effectively written-off an amount equivalent to nearly half of the country's annual budget," he asserted, asking the government how much of this Rs 26 lakh crore belongs to the country's farmers, laborers, students, and the poor.
He further questioned why such waivers were not offered for farmers and the poor.
"What is the social background of the capitalists whose loans, amounting to Rs 26 lakh crore, have been waived? Why is it that not a single individual among the beneficiaries of this Rs 26 lakh crore loan waiver belongs to the Dalit, Backward Class, or Tribal communities?"
Yadav remarked that in a country where the poor take out loans for as little as Rs 5,000 to Rs 10,000 to fund their children's education or weddings, the rich enjoy great benefits.
He further alleged that the entire administrative and banking machinery has come down upon the poor with crushing force to recover every single penny. "In their zeal for recovery, these agencies go so far as to seize even the farmers' cows and buffaloes," he said.
"The government must seriously consider the adverse impact that the waiver of loans for capitalists has on the economy of India-a country that already ranks among the most unequal nations in the world," he remarked.
Yadav further noted that, in terms of income inequality, India stands as one of the most unequal countries globally.
He cited a a report by the World Inequality Lab, that states inequality in India has now reached a historically high level.
"The top 1% of the country's population holds 22.6% of the national income and 40% of the national wealth. Statistics further reveal that the bottom 60% of the population collectively possesses a mere 3% of the country's total wealth," he added.
He further said "Instead of projecting the country as the world's fourth-largest economy, it should be acknowledged that, in global rankings for per capita income—out of 195 nations—our country has been unable to rise above the 141st position; a fact that can by no means be considered a matter of pride," he said.