Farmers' loan waiver

One of the most discussed aspect of the 2008 budget is Chidambaram's Rs.60,000 crore waiver of small farm loans, which has attracted a great deal of criticism (Gurcharan Das calls the waiver "immoral"). It wont be hard to find arguments for or against the waiver on various grounds, but what most commentators wont bother to present is a state-level perspective of the proposed sop.

Avinash has a short but insightful note on why the waiver wont bring much to Bihar, and what it tells about Bihar's financial infrastructure. Check out why Bihar Misses the Boat.