Date:29.07.

2015

PMK Founder Dr. S. Ramadoss Statement

PEOPLE UNDER KANDHU VATTI MENACE:

TN GOVT PUSHING THEM INTO DEBT TRAP
Everyone is aware that the Tamil Nadu government is in a financial mess due to its huge loan burden
as a consequence of its wrong economic policies. The people of Tamil Nadu are also suffering in the
fangs of private money lenders due to the inability of the government to steer them in the correct
direction.
Usury (Kandhu vatti) had become a big misery in Tamil Nadu. Large numbers of middle and lower
socio economic class people were forced to borrow from private money lenders for educational
expenses of their children and medical expenses of their family members. The loan burden of an
individual in urban areas had increased to Rs. 1.16 lakhs and that of a rural person had risen to Rs.
45,803 in Tamil Nadu as per the National Sample Survey. There is no law to govern these private
lenders and they lend at exorbitant interest rates of even 60% causing immense sufferings to the
poor. The poor are forced to borrow further to repay these loans and the vicious cycle leads to loss of
properties and even lives. It is a matter of fact that the police and government are not taking any
steps to control these private lenders. The Times of India newspaper dated 27th July in the article
titled How TN Government debt keeps people in red, had narrated with concrete evidences and
expert opinions that the major reason for the prevalence of usury in Tamil Nadu is the government
itself.
The article quoted that the director of the Madras School of Economics and a noted economist, K. R.
Shanmugam as saying Many people take loans to send their children to expensive private schools
because they feel that the quality of education in government schools is not good enough and we
have thousands of schemes aimed at poverty alleviation. But the outcome is the issue, implementation
is the key. The schemes look good on paper but, in reality, things are very different
No one can refute the fact that Tamil Nadu government is totally responsible for the people getting
entangled in the clutches of Usury. The primary responsibility of a peoples government is to provide
free education and health care. But the irresponsible Tamil Nadu rulers had privatized these two basic

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services and sell liquor that is killing lakhs of citizens each year. The major reason for the governments
inability to provide quality, free education and healthcare is its unmanageable loan burden. The loan
burden of Tamil Nadu government has increased by 300% in the last 10 years to Rs. 2.11 lakh crores.
The Times of India article also states that while 40% of governments income is spent on salaries and
pensions and 40% is spent on freebies, the remaining 20% goes for interest repayment leaving nothing
for investing in education, healthcare or any other developmental programs.
I had been repeatedly stating with corroborative evidences that DMK and ADMK who had been
alternatively ruling Tamil Nadu are doing cheap politics with their eyes only on votes with the resultant
economic mismanagement and sufferings of people. The TOI article proves my points. The comments
of the public in that article show that the free distribution schemes of the Tamil Nadu government
has not benefitted anyone. The article quotes a woman living in poverty due to usury as saying How
many people will the government give free things to? If they give us jobs, that is more than enough.
Extend the 100 days scheme to 200 days. If you do not eat from your earnings, you will not be able to
digest the food
The only way to bail out the people of Tamil Nadu from their loans is to provide them free education
and health care. The inability to provide free education and healthcare by these two parties after 50
years of rule proves their incapability. Since it is the policy of Pattali Makkal Katchi to provide free
education from LKG to higher education and totally free health care, only PMKs rule will permanently
remove the loan burden from the people of Tamil Nadu.

Yours,

(Dr. S.Ramadoss)