NYAY – a
substitute for reservation policy
Congress party is promising to transfer 1 6,000 a month to poor households
if elected to power. It is seeking to be one up on the ruling regime’s minimal
cash transfer scheme in the form of PM-KISAN. This policy is called Nyuntam Aay
Yojana (NYAY), in which 1 72,000 will be transferred every year to the poorest 20% of the approximately
25 crore Indian households - that would be 1 3.6 lakh crore.
Congress, should it come to power, will cut back on other subsidies and
programmes in order to finance NYAY. There is also the additional problem of
the identification of the poor. The idea behind NYAY is not entirely unsound.
An unconditional transfer of a specified minimum income support to the poor
will go a long way in helping address immediate needs related to health,
education and indebtedness. A large section of the targeted poor would include
landless workers and marginal farmers in rural areas, and unemployed youth in
families engaged in menial labour in urban areas.
A massive programme such as NYAY, however, has no precedent. It might
give a fillip to the Congress election campaign, but much more homework is
required for its implementation.
The dynastic Congress seems to be desperate to get back in power by
hook or crook. When a sense of restoring financial prudence in last five years
was being seen as a growth impetus, Congress looks to derail the entire Indian
economy as it did in its 60+ years of governance. With digitization of subsidy
transfers and plugging of leakages in MNREGA implementation, cronies of Congress
are now finding it difficult to milch the exchequer thru dubious means, hence
are devising a new scheme. Has poverty been reduced since Indira Gandhi coined
‘GARIBI HATAO’? One needs to seriously think before falling into the trap. Hope
the shrewd Indian voter understands the pitfall.
There is need to call the bluff of the income transfer scheme announced
by Congress. Interestingly Congress said that they had consulted Raghuram
Rajan, in framing this scheme. Now from where the famous Economist, who claims
to be having solutions to all third world problems, will bring money for this dole? Even if all the
existing doles are abolished, it will still outweigh the amount required for
this scheme. Rs 6000 per month cash dole to BPL families is good. The main point
is how long BPL families require this? Will it be demanded by their heirs too?
This is because since it appears classification of BC, SC, ST, OBC etc which
shows signs of never ending, This one may also add up to that list giving
loopholes for others too to claim for it.
Making such promises is a luxury enjoyed by those sure of not coming to
power.
The dole has become a problem in the UK due to large sections of
families working illegally and claiming dole. None of the political parties
would do anything to regulate this for fear of losing their vote-bank. In a
country like India where bureaucrats rule the roost and low level corruption is
rampant, the dole is a bad idea from a practical angle.
A better way would be to encourage small business and deter mega
business groups from wiping them out by price fixing. Small businesses provide
more employment for a given amount of capital required. The government can also
subsidise the wages for employees in small businesses. This would make it more
lucrative for individuals in lower middle class to start their own business
instead of seeking employment in mega corporations. Pakora can be good
business, if encouraged properly to prosper by quality of service rather than
money power. Getting free money can demean a human being.
No comments:
Post a Comment