Home Fact-Check Within hours of announcement by Rahul Gandhi, Congress leaders give new definition of income guarantee scheme, make absurd claims

Within hours of announcement by Rahul Gandhi, Congress leaders give new definition of income guarantee scheme, make absurd claims

Congress leader claim no Indian family will fall below monthly income of Rs 12,000 after the scheme, which is completely wrong

On 25th March, Rahul Gandhi announced the Congress party’s main promise for the 2019 Lok Sabha elections, a Minimum Income Guarantee Scheme. Addressing media, the Congress president had said that the scheme will ensure that poorest 20% of India’s population will be ensured a monthly income of Rs. 12,000 with this scheme. He had explained that each household in bottom 20% in terms of income will be paid Rs. 72,000 per year, and this will be paid as gap funding to ensure that monthly income a family becomes Rs. 12,000. For example, if monthly income is Rs. 8000, Rs. 4000 will be paid, and if monthly income is Rs 6000, the government will pay Rs 6000 so that the income becomes Rs. 12000. The scheme will benefit 5 crore families or 25 crore Indians, Rahul Gandhi claimed.

But the chairperson of Data Analytics Department of the Congress party Praveen Chakravarty posted some detail about the scheme which contradicts the explanation given by Rahul Gandhi. Chakravarty posted on Twitter that every poor family in the bottom 20% will get the same, uniform amount of Rs. 72,000 a year.

This is completely opposite of what Rahul Gandhi had said earlier in the day. Paying a fixed amount per year and paying the differential amount between actual monthly income and Rs 12,000 is totally different, and Rahul Gandhi and Praveen Chakravarty are providing contradictory versions of the same scheme.

- Advertisement - - Article resumes -

Congress leader Randeep Singh Surjewala also addressed a press conference today contradicting Rahul Gandhi. He clarified that this scheme is not a Top-Up scheme as claimed by Rahul Gandhi, and 5 crore families will receive a fixed amount of Rs. 72,000 per year. Surjewala also added a new dimension to the scheme, saying it will be a women-centric scheme, and Congress Party will deposit Rs. 72,000 in the bank account of the woman of the family.

Praveen Chakravarty also revealed a very important detail of the scheme which was not disclosed by Rahul Gandhi, that the scheme will be a federal scheme with the participation of states. This means, states will have to bear part of the expense of the scheme, and it will not be entirely funded by the central government. This provision plants the seed of divide between centre and states, as many states may not be willing to participate in such an expensive scheme. And if states ruled by opposition parties refuse to participate, the Congress party retains the opportunity to attack such opposition parties saying they are refusing to pay the poor their due.

Congress party’s Data Analytics chairperson also made a sensational claim which does not pass the basic test of logic and arithmetic. He said, with this scheme, “no Indian family will fall below a minimum income threshold of Rs.12000 a month”.

But for this be true, the number of families with monthly income of Rs.12000 at present has to be 20% of the total number of families in the country or less than that, and the rest 80% or more families must have an income of Rs. 12,000 or more per month. The party itself says that the scheme will be limited to 20% poorest families in the country which comes to 5 crore families, so if families with Rs. 12,000 as monthly income exceeds 20% or 5 crores, not all of them will be covered under the scheme.

As per the World Inequality Database, the average income of the bottom 50% of the Indian population was around Rs. 43,000 in 2015, and the average income of the next 40% was Rs. 1,06,795. This means a whopping 90% falls below the average monthly income of Rs. 12,000. Therefore, even after the Congress scheme raises the income of the bottom 20% to Rs. 12,000, there will be still a large portion of Indian population earning less than Rs. 12,000 per month.

Moreover, there are a large number of households earning below Rs. 6,000 a month, and even if they are paid Rs. 72,000 per year, their monthly income will still remain below Rs. 12,000. For example, if a family earns Rs. 4,000 per month, after getting the benefit of this scheme the family’s income will go up to Rs. 10,000 per month, not Rs. 12,000.

Hence the claim by Praveen Chakravarty that no Indian family will fall below the minimum income of Rs. 12,000 a month is completely baseless and misleading, and not based on reality.

The proposed scheme of the Congress party has another logistical nightmare which needs to be addressed. The scheme is based on identifying the bottom 20% of the population in terms of income but at present there no comprehensive data on the income of each citizen. What we have are various surveys which are done on samples of various sizes, and there is no detail income data at present. Other than those who work in the organised sector, there is no dependable source to obtain income data of people. The census of India does not collect income data of households. This means a complete census of income of Indian population will need to be undertaken to identify the beneficiaries of this scheme. As that will be a time-consuming job, even if somehow Congress party comes to power and implements this scheme, it is unlikely that it will be rolled out all over the nation by the time the term of the government ends.

Sharing is caring - Share This Post and Support:
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Most read articles recently

Two AAP MLAs lunged towards Kejriwal and one punched him such that his glasses fell off, claims Kapil Mishra

AAP MLAs reportedly beat up Kejriwal so much that he has injured his knees and could not walk properly

Air Vistara senior officials visit Gen GD Bakshi, apologise for deleting the tweet honouring him

Sanjiv Kapoor, Chief Strategy & Commercial Officer, and Deepa Chadha, Senior Vice President – Human Resources & Corporate Affairs or Air Vistara visited Maj. Gen. Bakshi and tendered an official apology
If you believe Google trends, this election is a runaway win for Modi

If you believe Google trends, this election is a runaway win for Modi

It’s fairly clear: Congress hasn’t managed to get its message out.  If you ask Google Trends, this election is over. The writing is on the wall. PM Narendra Modi is all set to win

AltNews co-founder caught shielding Islamists following the Sri Lanka terror attacks

Altnews cofounder seems to have graduated from sharing fake news himself to shielding radical Islamists
Sri Lanka attacks

Sri Lankan millionaire’s family was an ISIS cell: Suicide bombers shatter shameless excuses peddled by ‘liberals’ to justify Islamic terrorism

All over the world, the terrorist attacks by radical Islamists is immediately served with long and extensive excuses about how social ills, discrimination, poverty, hardships, and atrocities lead to terrorism.

‘For five seconds, I was shocked. I was very angry,’ Sumitra Mahajan on Rahul Gandhi’s infamous wink

"But when he returned to his seat, started speaking again and winked, I was very angry. I said this is not proper. Actually, the hugging was not proper either. But this was a step too much," Sumitra Mahajan said.

Cambridge University confirms that Rahul Gandhi did his M.Phil using the name Raul Vinci

Cambridge University confirms that Rahul Gandhi did his MPhil using the name Raul Vinci
The Quint lies, twists and tortures CVoter data to make it say that the Modi wave is over. Here is what the data actually says

The Quint lies, twists and tortures CVoter data to make it say that the Modi wave is over. Here is what the data actually says

Leftist portal The Quint published an article headlined "Modi wave over? Why pollsters are scaling down projections for BJP" based on CVoter data, where the data itself was twisted, selectively quoted and misrepresented

‘Liberals’ addressing Yogi Adityanath by his birth name is a reflection of their deep seated Hinduphobia

The elevation of Yogi Adityanath to the seat of Chief Minister of India's most populous state ruffled many feathers and it's hardly surprising that they are throwing everything at him in the desperate hope that something will stick.

Non-bailable warrant issued against Arvind Kejriwal, Manish Sisodia and Yogendra Yadav in a defamation case

Additional Chief Metropolitan Magistrate issued non-bailable warrants as Kejriwal, Sisodia and Yadav were not present during the hearings of the case

Latest articles

Connect with us

157,215FansLike
130,192FollowersFollow
54,682SubscribersSubscribe

Don't miss these

Sharing is caring - Share This Post and Support: