International Journal of Business Ethics in Developing Economies

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Farm Loan Waivers and Tax Payers’ Morale:A Dilemma


Affiliations
1 Assistant Professor, Department of Commerce, Tripura University, Suryamaninagar, West Tripura, Tripura, India
2 Assistant Professor, Department of Rural Studies, Tripura University, Suryamaninagar, West Tripura, Tripura, India
     

   Subscribe/Renew Journal


Pressure has been mounting on central government for announcement of farm loan waivers before the Lok Sabha election due in first half of 2019 inasmuch; three state governments of Hindi heartland viz. Rajasthan, Madhya Pradesh and Chhattisgarh in December, 2018 have announced the same for executing their pre-poll commitments. The interest rate subventions and excessive subsidized fertilizers have not so far been yielded the desired outcomes hence for viable and sustainable farming government should come out with alternative ways for supporting them rather simply banking upon blanket waivers without analyzing the associated pros and cons and impact analysis. The repetitions of such waivers in long run would likely to demotivate the taxpayers and the cases of tax evasions probably to increase in leaps and bounds, inasmuch even after seven decades of independence the Indian tax system has not been reached to such a level of full proof as well as fraud proof. The economists have categorically warned about the adverse consequences of such blanket waivers along with taxpayers reservations have been highlighted on such political gimmicks at the costs of economic growth and development; the alternative ways for addressing farmers’ plight have also been indicated.

Keywords

Farm Loan Waiver, Economic Growth, Taxpayers, Informal Credit, Political Gimmick, MSP.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Akani, G. (2010, December 30). Role of taxation in developing countries like India. Kalyan City Life. Retrived from http://kalyan-city.blogspot.com/2010/12/role-of-taxation-in-developing.html

  • Allingham, M. G., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics, 1(3), 323-338.

  • Buenode Mesquita, B., Smith, A., Siverson, R., & Morrow, J. (2003). The logic of political survival. Cambridge, MA: The MIT Press.

  • Carbonell-Nicolau, O. (2009). A positive theory of income taxation. The BE Journal of Theoretical Economics, 9(1), 1-49.

  • Chakraborty, L. S. (2019, January 25). Analysing budget forecasting errors. The Financial Express, p. 8.

  • Desai, M. (2018, December 24). Farm debt relief is unsound economics. The Financial Express, p. 6.

  • Elson, D. (1998). Integrating gender issues into national budgetary policies and procedures: Some policy options. Journal of International Development, 10, 929-941.

  • Engerman, S. L., & Sokoloff, K. L. (2002). Factor endowments, inequality, and paths of development among new world economies. Economia, 3, 41-88.

  • Epstein, G. S., & Gang, I. N. (2010). Why pay taxes when no one else does? Review of Development Economics, 14(2), 374-385.

  • Farhi, E., Sleet, C., Werning, I., & Yeltekin, S. (2012). Non-linear capital taxation without commitment. The Review of Economic Studies, 79(4), 1469-1493.

  • Hibbs, D. A., & Piculescu, V. (2010). Tax toleration and tax compliance: How government affects the propensity of firms to enter the unofficial economy. American Journal of Political Science, 54(1), 18-33.

  • Jackson, B. R., & Milliron, V. C. (1986). Tax compliance research: Findings, problems, and prospects. Journal of Accounting Literature, 5, 125-165.

  • Johansen, L. (1965). Public economics. Amsterdam: North-Holland.

  • Lodhi, A. J. A. (2002). All decisions are top-down: Engendering public expenditure in Vietnam. Feminist Economics, 8(3), 1-19.

  • Mehrotra, A., & Valila, T. (2006). Public investment in Europe: Evolution and determinants in perspective. Fiscal Studies, 27(4), 443-471.

  • Mohanty, S. (2018 December 23). Why farm loan waivers are not a good idea. The Business Standard, p. 11.

  • Morar, I. D. (2015). Taxation: Effects and influences. Procedia Economics and Finance, 32, 1622-1627.

  • Musgrave, R. A., & Musgrave, P. B. (1984). Public finance in theory and practice. New York: McGraw-Hill.

  • Ninan, T. N. (2019, January 26). Mr. Jaitley’s Budgets. The Business Standard, p. 9.

  • Patel, P. (2018, April 12). Ayushman Bharat-A healthy step. The Business Line, p. 10.

  • Prest, A. R. (1972). Public finance in under-developed countries. Weidenfeld and Nicholson.

  • Rao, M. G. (2018). Public finance in India: Some reflections. Decision, 45(2), 113-127.

  • Scheve, K., & Stasavage, D. (2010). The conscription of wealth: Mass warfare and the demand for progressive taxation. International Organization, 64(4), 529-561.

  • Song, Y., & Yarbrough, T. (1978). Tax ethics and tax payer attitudes: A survey. Public Administration Review, 38(5), 442-452.


Abstract Views: 411

PDF Views: 1




  • Farm Loan Waivers and Tax Payers’ Morale:A Dilemma

Abstract Views: 411  |  PDF Views: 1

Authors

Rajat Deb
Assistant Professor, Department of Commerce, Tripura University, Suryamaninagar, West Tripura, Tripura, India
Arobindo Mahato
Assistant Professor, Department of Rural Studies, Tripura University, Suryamaninagar, West Tripura, Tripura, India

Abstract


Pressure has been mounting on central government for announcement of farm loan waivers before the Lok Sabha election due in first half of 2019 inasmuch; three state governments of Hindi heartland viz. Rajasthan, Madhya Pradesh and Chhattisgarh in December, 2018 have announced the same for executing their pre-poll commitments. The interest rate subventions and excessive subsidized fertilizers have not so far been yielded the desired outcomes hence for viable and sustainable farming government should come out with alternative ways for supporting them rather simply banking upon blanket waivers without analyzing the associated pros and cons and impact analysis. The repetitions of such waivers in long run would likely to demotivate the taxpayers and the cases of tax evasions probably to increase in leaps and bounds, inasmuch even after seven decades of independence the Indian tax system has not been reached to such a level of full proof as well as fraud proof. The economists have categorically warned about the adverse consequences of such blanket waivers along with taxpayers reservations have been highlighted on such political gimmicks at the costs of economic growth and development; the alternative ways for addressing farmers’ plight have also been indicated.

Keywords


Farm Loan Waiver, Economic Growth, Taxpayers, Informal Credit, Political Gimmick, MSP.

References