A fortnight ahead of first ballots to be cast, Congress president Rahul Gandhi unveiled script to thrust his party at the centerstage of 2019 Lok Sabha elections. With promise of Rs 12,000 a month for five crore poor, 20 per cent of the total poverty stricken households, Gandhi ushered in a Rs 3.60 lakh crore annual package to blunt the march of BJP's mascot Narendra Modi. In the absence of repackaging of subsidy programmes, currently implemented worth Rs 7 lakh crore, Gandhi is arguably calling for freezing nearly 40 per cent of India's total annual Budget to stay politically relevant.
ONLY a few days ago, Congress' poll wizardry in unleashing Priyanka Gandhi Vadra wrapped up her Ganga yatra. Ensconced in a customized boat with necessary comforts, she sought to rekindle the old touch of former Prime Minister Indira Gandhi. But crowd hungry television crews struggled to find thronging mass of people during the course of yatra. The political voyage was scratchy and revealing. The verdict within the Congress was evident, that the magical touch of Priyanka Gandhi Vadra is suspect.
The Opposition grand alliances in parts of the country have shown contempt for the Congress. Akhilesh Yadav and Mayawati, holding the turf of Uttar Pradesh, found no merit in giving lease of life to the Congress in the state where the grand old party is in prolonged vegetative state. Mamata Banerjee (West Bengal) would not yield an inch to the Congress, which is gasping for breath in the state. The Congress remains a baggage on the back of Lalu Prasad's heirs in Bihar. Regional satraps' shunning Congress robbed the main Opposition party of the political depth to claim the status of a challenger of the ruling BJP.
Former chief economic advisor Arvind Subramanian in the 'Economic Survey (2016-17)' floated the idea of universal basic income. Early this year, he followed his idea with a book -- Of Counsel: The challenges of the Modi-Jaitely economy -- publicly lobbied for political acceptance of the idea of universal basic income (UBI).
Prime Minister Narendra Modi seemingly has no appetite for doles of universal nature. His statecraft is embedded in targeted welfarism. That he shunned the proposal for a universal farmer income support for small and marginal farmers with an annual cost of Rs 75000 crore is a definitive illustration. So, Modi didn't fall for Subramanian's welfarism prescription, which in some forms are being implemented in China, Germany, Canada, United Kingdom and elsewhere.
THE Congress has principally been slammed by party sympathisers for failure to come out with a narrative to counter Modi. The Congress stayed the course of Modi the person bashing all five years. Sympathisers were rightly alarmed, for knowing well that Modi thrives on negativism. And, consequently, Rahul Gandhi clutched on the Subramanian straw to stay relevant in the elections.
Union Minister Arun Jaitely has said that the NDA government currently is running subsidy programmes worth Rs 7 lakh crores. The annual Budget size of India is about Rs 24 lakh crore. So, Rahul Gandhi's dole could take the subsidy burden to about Rs 11 lakh crore, accounting for almost 40 per cent of the national resources. That the question on how would additional Rs 3.60 lakh crore be mobilized was left unanswered by Gandhi on expected line. That the inflationary impact and the consequent mortal blows to economy weren't worth shedding light by the Congress leadership was also on predictable line. Answers to details would rob the magic of Congress' political art of revisiting 'Garibi Hatao' slogan.
Former vice chairman of NITI Aayog Arvind Panagaria, the only economist worth mentioning in the Modi dispensation for first three years, has reasoned that universal basic income or its any variant would only mean that there would be no incentive for work. All those earning less than Rs 12,000 a month would find incentivized to stay home. The government will pay for their leisure. Agriculture could be denied farm labour. The informal sector's labour cost could go up punitively. That the Congress is brewing a recipe to make India more lazy arguably isn't an outlandish claim.
One doesn't need to be an economist to know that there's no scope for India to expand its resources by additional Rs 3.60 lakh crore imminently. That makes it incumbent that the resources being earmarked for infrastructure upgrade -- rail, road and port -- would face the axe. The spiral effect of mortally wounding developmental resources would unleash wave of employment for the educated youth.
INDIA evidently can ill afford the political expediency of a political outfit scrounging for survival tricks. Economists must come out of their closets to unequivocally condemn Congress' recipe for economic disaster.
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