THE question of farm-loan waiver that is being demanded by the peasantry is much misunderstood. Such a waiver, it is argued by critics, would vitiate the credit-culture in the country: people would stop repaying loans henceforth in expectation of waivers on them. Since the UPA government had waived farm-loans a few years ago and now again there is a demand for a farm-loan waiver, peasants, they contend, are getting into a habit of not paying loans and demanding periodic waivers instead.

WHEN the CSO had released advance estimates of GDP for the October-December quarter of 2016-17, within which demonetisation had occurred, the fact that the economy had still shown a 7 per cent growth rate, had been an occasion for much celebration in government circles. It had been used by the government to argue that, contrary to the claims of the critics, demonetisation had not hurt the economy.

THE Modi government is completing three years in office amid much fanfare and propaganda about its achievements during this period. Aiding this propaganda is the advance estimate of GDP which projects a growth-rate of 7.11 per cent for 2016-17, a shade lower than last year’s 7.93 per cent, but apparently impressive nonetheless. Despite the fact that the chief statistician has clarified that these figures are based on data for only seven moths (April-October) of the current fiscal year, and that the effects of demonetisation are not captured by this figure, the hype goes on undeterred.

THAT the large non-performing assets (NPAs) on the books of banks, especially public sector banks, is the only blemish in India’s continuing economic story, is the official view. Speaking recently at the Council on Foreign Relations in New York, Finance Minister Arun Jaitley reportedly declared that NPAs were “one very big challenge” facing the government, and resolving that problem was its “top priority”. Parallel to this, others such as top-level Reserve Bank of India officials, have been floating trial balloons, in the form of recommendations on various methods of addressing the NPAs.

SOME weeks ago when the official “quick estimates” of GDP for the third quarter of 2016-17 (October-December) had been released, putting the GDP growth in this quarter (over the corresponding quarter of 2015-16) at 7 percent, which broadly conformed to the CSO’s prediction before demonetisation, a veritable chorus had gone up that the critics of demonetisation had been proved wrong, that the measure did not have the recessionary effect they had claimed it would.