Farmers loan waiver: is it a boon or bane?

Loan waivers neither help the farmers nor improve the agrarian economy. Most of the farmers in distress fall outside the universe of beneficiaries entitled for institutional finance and as such the write-offs do not benefit the largest segment of poor farmers. Loan waivers actually become a drag on the economy and further curtail the availability of credit to the small and marginal farmers, who are direly in need of help. Appeasement schemes targetted at the more influential segments, in fact, raise the cost of borrowing for the poorer lot. It is estimated that farm loan waivers benefit no more than 10-15 percent of the farmers. [more]

All you need to know about GST

Goods and Services Tax (GST) is a value-added tax at each stage of the supply of goods and services precisely on the amount of value addition achieved. It seeks to eliminate inefficiencies in the tax system that result in ‘tax on tax’, known as cascading of taxes. GST is a destination-based tax on consumption, as per which the state’s share of taxes on inter-state commerce goes to the one that is home to the final consumer, rather than to the exporting state. GST has two equal components of central and state GST. [more]