Corporate loan write-offs are justified as necessary to improve banks’ financial

situation and to stimulate economic activity. However, they increase the fiscal deficit and

government debt, reducing the money available for social welfare and development

programmes. The burden is borne by taxpayers and we now also have to make do with

fewer public services. Large loan waivers also distort the market by handing corporate

houses an unfair advantage – they not only access cheap credit, but avoid

accountability. Smaller businesses, meanwhile, get no such relaxations and have to pay

higher interest rates to make up for the loss caused by the write-offs. It’s a process that

reeks of corruption and has no moral root. Please listen to the latest episode of All Indians

Matter.

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