India will print $150 billion in Rs. at the cost of budget deficit and inflation to bail out the farmers – interesting election winning strategy that can devastate India in future
Preeti Siinghani
Mar. 14, 2008

Indian politicians have learnt it from US President George Bush and the political parties in US. Distribute cash to win the election. Who cares if the country goes to hell with sever budget and trade deficit. Government owns the money-printing machines. So why not print money and bribe the common people to stay in power.

India will print money at the cost of budget deficit and inflation to bail out the farmers. Rs. 60,000 crores will be printed and handed over to the banks. That is equivalent to $150 billion.

Finance Minister P Chidambaram declared that Rs 60,000 crore would be provided in cash to banks over three years to fully settle the burden of farm loan waiver.

Expressing confidence that the government would be able pay back to the banks through budgetary provisions due to buoyancy in tax collections, he said, "we can resort to borrowings. But it will be the last resort."

However, the tax collection projections are based on robust growth of 10% or more. India is headed for a recession. The only way this can be funded is by borrowing which is nothing else other that pure and simple printing money recklessly. The consequence of this is severe.

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The only way this can be funded is by borrowing which is nothing else other that pure and simple printing money recklessly. The consequence of this is severe.
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