Modi govt wrote off Rs 9.9 lakh crore, recovered only Rs 1.8 lakh crore

Congress leader and MP Randeep Surjewala stood up in the Rajya Sabha to accuse the Modi government of providing undue benefits to select cronies through extensive loan write-offs.

Speaking on the 2024 Union budget on 6 August, Surjewala described the government's actions as tantamount to offering a “tempo service” for the favoured few, highlighting a troubling trend of crony capitalism.

Emphasising that loan write-offs for chosen cronies have become an annual affair under the Modi administration, Surjewala revealed alarming data that shows that over the past five years alone, loans totalling more than Rs 9.9 lakh crore have been written off, while only Rs 1.8 lakh crore has been recovered.

The data was provided by the Modi-led NDA government in reply to questions asked by Surjewala.

According to the data, the Modi government wrote off a total of Rs 45,431 crore in loans during FY 2022–23. In FY 2023–24, the government wrote off Rs 44,893 crore in loans.

That's quite a glaring gap, raising questions around the government's financial accountability and economic management. Surjewala certainly argued that these figures reflect the inefficacy and incompetence of the Modi government, which, according to him, is wreaking havoc on the economy.

“The sheer volume of these write-offs and the dismal recovery rate demonstrate how an inept, incompetent and inefficient Modi government has been derailing the nation's economic stability,” he said.

The Congress leader’s statements highlighted popular concern around the government's handling of public funds and the favouritism shown towards corporate cronies. Analysts believe that such large-scale loan write-offs not only burden the economy but also undermine public trust in financial institutions and governance.

Surjewala’s accusations come at a time when the Modi government is already under scrutiny for its economic policies, and this new revelation adds to the mounting pressure towards greater transparency and accountability in its financial dealings.

The Opposition, led by the Congress, has called for a thorough investigation into these loan write-offs.