Should central government provide West Bengal a moratorium on loan repayments? - Group Discussion

For

- It will help West Bengal to move out of their debt crisis that they are facing right now.

- Giving them a moratorium on all interest payments would mean giving them some financial respite which would be good for a debt ridden state like West Bengal.

- This would help the government to pay salaries to their own employees.

- It would result in easing of the present political tension that prevails in West Bengal right now.

- It’s good for the common man as it would result in less tax payment.

Against

- Just because West Bengal is in debt a moratorium cannot be provided to them as it’s a suspension of the on going activities in the state and it is also unfair to other states.

- It is not in the best of interest for the nation as it brings in the state of anarchy.

- It would bring down further reduction in revenue generation. In simpler terms it will bring in an economic chaos.

- It would mean loss of opportunities for the people of the state, which needs to be enhanced with time to fill up the deficit.

- Providing moratorium to WB will lead to cascading demands from other indebted states.

- It will create a rift amongst the states as higher debts lead to a moratorium then that acts as an incentive for other states to have higher debts.