With the announcement of a concrete plan in the state Budget to write off farm loans, H D Kumaraswamy has projected himself as a chief minister who walks the talk. But the decision to keep his generous election promise comes at a huge cost to the exchequer—`34,000 crore to be precise—and it’s the taxpayer who will ultimately foot the bill. Logistical difficulties of such an exercise aside, its debilitating effect on the state’s finances is going to be felt for a long time.
But having made the promise and being constantly provoked by the opposition BJP on that account, Kumaraswamy had no option but to go ahead with the loan waiver regardless of the cost.
The Budget is also loaded in favour of southern Karnataka, the only region of the state where Kumaraswamy’s party JD(S) has a strong base, and the chief minister has made every effort to please his vote bank. The southern bias, which is evident in the structure of the coalition government as well, has led to protests by elected representatives and people from north and coastal Karnataka.
But to be fair, annual Budgets presented by governments in this country are more about politics than economics. If he has been biased toward or against certain sections or regions, it must be seen as a conscious political decision.
Despite its shortcomings, the Budget has a lot of positive takeaways – especially for industries, agriculture, education and urban infrastructure. With a cloud of uncertainty hanging over the coalition government’s longevity, Kumaraswamy must not lose any time in implementing the proposals and thereby send out a message that he means business and his government is not just an opportunistic political arrangement. Coming up with solutions for Bengaluru’s twin problems of traffic and pollution, along with generating employment through industries, will test his ability. In comparison, the farm loan waiver is probably the lesser challenge, despite the financial burden.