Why govt to waiving loan taken by women from micro finance institutions?

Recently the Finance minister of Assam Himanta Biswa Sarma announced that the state government is making attempt to ensure that loans taken by women from Micro finance institutions (MFI) are waived. Is it possible to government? Why govt is announcing to waiving loan taken by women from micro finance institution? In this article we are going to discuss the probable reality of this announcement. We are also going to discuss some reasons that why should a govt to waiving loan taken by women from micro finance institution. Let’s see.

Can govt really do it?

From the point of view of possibility – it is possible to govt and it should be a reality. Why? In recent days we have seen that a measure of 2800 crore rupees is reserved for the Orunodoi Scheme under which every year 10 thousand rupees to be given to 27 lakh helpless families through DBT. The support is given by the government of Rs. 830 per month will mean an additional per annum income of Rs. 10,000 to the poor households.

Major scheme implemented to unemployment youths

After that govt implemented a another giant scheme SVAYEM scheme where State Govt provided Rs. 50,000 each to 2 lakh youth to encourage entrepreneurship. After the pandemic this scheme played an important role to overcome unemployment where the beneficiaries are able to start their own business to survive even in adverse situations like pandemic.

Why should govt waive loans taken from micro finance institution

There are various reasons we are going to share with you that why a govt should waive loans taken from micro finance institution. These are-

1. The recent pandemic break the economic activities of us. The government should trying to provide some grants to the citizens that they can restart their economic life. These grand can be various format as like the concept of Helicopter money, Universal Basic Income or waive the loans.

2. It can also be a political roadmap to the parties to attract the citizens that they govern.

3. In Assam, the powerful Minister Dr. Himanta Biswa Sarma already declared his long term vision to include Assam into the Top five States list of well Development. So that, he is honestly trying to implements various beneficial schemes to the economically weaker sections.

4. In this pandemic period various economist and International banks are discussing about the ideas of waving the loans to help the citizens economically. So that, it could be a reality soon.

Source: Economictimes