Rahul Gandhi's mega income support plan will cost the exchequer Rs 3.6 lakh crore which is more than half of the central government's total budgeted borrowings for 2019-20.
Rahul Gandhi Minimum Income Plan: Congress President Rahul Gandhi has promised Rs 72,000 per month income support to poor families, which could be the world’s largest such scheme that would entail an outgo of Rs 3.6 lakh crore per annum, almost half to India’s total fiscal deficit.
“Final assault on poverty has begun. We will wipe out poverty from the country,” he said at a press conference at the party headquarter in New Delhi
The announcement has been aimed at nullifying the electoral advantage to the NDA government after it announced Rs 6,000 per year support to small and marginal farmers in this year’s interim budget.
Prime Minister Modi has already launched the scheme on February 24 and the first tranche of Rs 2,000 have been paid to more than 2.74 crore eligible farmers. The second installment of Rs 2,000 will be paid to around 4.74 crore eligible farmers next month.
The PM Kisan Samman Nidhi scheme, which has been implemented with retrospective effect from December 2018. The scheme entails an expenditure of Rs 75,000 crore per annum and will benefit around 12 crore farmers.
Talking about the scheme, Rahul Gandhi said he had studied the implications of the scheme and discussed it with renowned economists before the announcement.
“It is an extremely powerful, ground-breaking and well-thought through idea. We have consulted many economists on the scheme,” he said.
The scheme would entail an expenditure of over Rs 3.6 lakh crore, more than half of the government’s total budgeted borrowing for FY 2019-20.
According to the interim budget presented by the then finance minister Piyush Goyal, the total budgeted borrowing of the central government will top the figure of Rs 7 lakh crore for the first time in the history of the country in FY 2019-20.