Question 493

In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives. ______ to reports, the Central government is discussing a scheme to waive outstanding farm loans in the aftermath of widespread farmers’ protests between March and December 2018. ______ now, at least 11 States have announced schemes to waive outstanding farm loans: Madhya Pradesh, Uttar Pradesh, Karnataka, Tamil Nadu, Maharashtra, Chhattisgarh, Punjab, Andhra Pradesh, Telangana, Assam and Rajasthan. The pitch for waivers _______ States has added to the pressure on the Central government for a nationwide farm loan waiver. Economists and bankers are sharply divided on ______ farm loan waivers are desirable. One section of economists and hard-nosed bankers argue that loan waivers represent a poor policy _______ a variety of reasons. First, loan waivers have “reputational consequences”; that is, they adversely ______ the repayment discipline of farmers, leading to a rise in defaults in future. Second, earlier debt waiver schemes have not led to increases in investment or productivity in agriculture. Third, after the implementation of debt waiver schemes, a farmer’s access to formal sector lenders declines, leading to a rise in his dependence on informal sector lenders; in other words, waivers ______ to the shrinkage of a farmer’s future access to formal sector credit. These arguments need careful and critical assessment. To begin ______, there have only been two nationwide loan waiver programmes in India after Independence: in 1990 and 2008. The accompanying image gives data on agricultural non-performing assets (NPAs) of banks before and after the 2008 waiver and throws up two conclusions. ______ now, at least 11 States have announced schemes to waive outstanding farm loans: Madhya Pradesh, Uttar Pradesh, Karnataka, Tamil Nadu, Maharashtra, Chhattisgarh, Punjab, Andhra Pradesh, Telangana, Assam and Rajasthan.