In continuation of yesterday’s blog about some interesting news items in last few days. In today’s blog I am elaborating on one more news item, and this news items is regarding:
PC Chidambaram – He is a Congressmen and staunch Modi critic, who has always blasted the economic and financial policies of Modi’s govt. In a news item recently published in The Hindu, He said “ The proposed Nyuntam Aay Yojana (NYAY) or the minimum income gurantee scheme will be rolled out in phases after a pilot project, if the party is voted to power. Congress Party has done enough homework for the scheme and has consulted many economists on the subject. All of them had broadly agreed that country could do it. With the growing GDP and improving tax collection, it would be possible to implement the scheme now.”
He further added size of Indian economy is Rs 200 Lakh Cr and in nominal term, this size will increase by 12% every year. Therefore after 5 years GDP would have grown to Rs 400 Lakh Cr. The expenditure of the govt (states & centre) is approx 60 Lakh Cr. Revenues are growing at 18% . Therefore, the amount Central & State govts will double in 5 years. We believe, India has the capacity to implement this programme. After considering all the factors and crunching numbers, the party has come to conclusion that the Centre & States should provide Rs 6000 per month to each of 5 Cr families. Our calculations shows that the funds required for NYAY will not cross 2% of GDP.
He further said that there was enough data through the schemes of the UPA & NDA to identify the 5 Cr families.
My question to PC would be ‘why your govt can not think of providing employment to poor families where they can earn 6000 per month. Why freebies all the time. Or it seems that Congress govt is interested in providing freebies only , so the middlemen & other politicians can siphon off money in the process; which has been happening all the time during Congress regime.
PC, by quoting the figure of 12% growth in GDP will double for next 5 years, and growth of Revenue at 18%. So why was the big talks against GST and Demonitisation by him, telling the general public that these will hit the growth of GDP and the economy. Whom to believe PC of 2016/17 or PC of 2019. In the end he has essentially given a big thumbs up to the policies of Modi govt. In the statement, he also said that it was not possible before, but possible now.
He just shot himself in foot, when he says it is possible now. So indirectly he is admitting that GDP and economy are doing well, which during their (UPA) regime were not.
The history is such that whenever NDA is in power the economy and GDP are at better footing. When UPA1 took over from NDA in 2004, the economy was in better shape as compared to what NDA got in 1998. But what did UPA1 & UPA2 did ? Agreed during UPA1 economy was in improved state, but what happened to economy & GDP in UPA2 is well known. Modi govt got economy in shambles and in 5 years they have changed the economy & GDP to such a level , that person like PC is telling poor public that we can provide you freebies of Rs 6000 per month.
My submission to PC & Congress would be , providing freebies is not a solution to removing poverty. Last 7 decades have proved that by providing freebies poverty can not be removed. For removing poverty govt has to work on how the work can be created for the poor so that they can earn to fulfil their basic needs, but the majority of the govt after the independence have failed on this count.
And finally
The crux of the issue is that, in our country everyone gets attracted by the name freebies. But public should understand that in today’s world nothing comes free. The honest public is paying direct & indirect taxes to govt, and so govt gets revenue. What does an honest tax payer feel, when his hard earned money is given to someone else as freebies, and it is not used for development purposes for which it is collected. Naturally he will feel disgusted. What does it lead to – in the past it lead to tax evasion and cash economy. By great effort of present govt the tax collections are much better, tax evasion has been reduced, and cash economy also slowly coming down.
My personal opinion would be that no govt should announce any freebies, in fact they should work toward how to create jobs , so that every citizen whether educated or non educated earn enough to fulfil his basis needs.
What you say, my friends.
Awaiting your comments/feed backs/views.
Anil Malik
Mumbai, India
4th Apr 2019