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CAG finds major lapses in farm debt waiver scheme
Vibha Sharma/TNS

New Delhi, March 5
Signalling more trouble for the government, the Comptroller and Auditor General (CAG) has discovered serious lapses in the UPA’s 2008 “game-changer”, the Agricultural Debt Waiver and Debt Relief Scheme.

Report of the CAG, tabled in Parliament today, said the Rs 52,000-crore loan bonanza for small and marginal farmers was implemented hastily “in a very short span of one month” making it prone to serious lapses and errors in awards to beneficiary farmers. A whopping 3.69 crore small and marginal farmers and 60 lakh other farmers were given debt relief of Rs 52,516 crore as part of the scheme.

“Errors of inclusion and exclusion” is what the government auditor has highlighted in the performance audit of the scheme which, along with UPA’s flagship MNREGA scheme, is credited for its return to power in 2009. The CAG has also completed the audit of MNREGA, but the report is pending with the government.

Apart from raising doubts on implementation of the Agricultural Debt Waiver and Debt Relief Scheme and capability of lending institutions, the CAG has also found instances of tampering of records and pulled up the Department of Financial Services (DFS) for deficient monitoring of the multi-crore scheme launched in May 2008. The CAG’s performance audit reveals malpractices in 22.32 per cent of the 90,575 cases test-checked.

UPA’s Rs 52,000 cr project

The Agricultural Debt Waiver and Debt Relief Scheme was launched in May 2008 to address farmers’ woes

It was to provide complete waiver of eligible amount to small and marginal farmers and one-time relief of 25% of eligible amount to other farmers, subject to payment of 75% of the amount

The government waived debt of `52,000 crore to 3.45 crore farmers in the last four fiscals

The CAG report says thousands of beneficiaries were ineligible while eligible were left out

Prima facie evidence of tampering, over writing and alteration of records