Thursday, February 25, 2021
Home Fact-Check Within hours of announcement by Rahul Gandhi, Congress leaders give new definition of income...

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.

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.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

How disability rights activist Virali Modi came back from the dead thrice and went on to inspire millions over the years

Disability rights activist and motivational speaker Virali Modi on how she came back from the dead, thrice and her other struggles and victories.

As Mamata Banerjee and Asaduddin Owaisi fight over Muslim votes in West Bengal, state police deny permission for the first rally of AIMIM

The entry of Asaduddin Owaisi's AIMIM into the West Bengal politics is a big jolt to Mamata Banerjee who is eyeing at her third term

Netizens hail Mamata Banerjee for inadvertently highlighting PM Modi’s focus on use of renewable source of energy by riding an e-scooter

Netizens were amused that since e-vehicles are a more environmental friendly mode of transport, riding it to protest against rising fuel prices is quite a meta.

Maharashtra dethrones Kerala as new Covid hotspot, together account for 77% of cases in India

Maharashtra registered 8,807 new coronavirus cases and 80 deaths in the last 24 hours, the highest in the country.

Relatives of Liyaqat and Rihasat Khan give death stares: Hindu man whose garage was gutted by Muslim mob during Delhi anti-Hindu riots a year...

An eyewitness of the horrifying Delhi riots OpIndia spoke to revealed that fear still pervades among the Hindus residents of the region

Delhi: Labourers get angry at AAP after they are not paid Rs 500 promised to attend Kejriwal’s rally

While making poll promises for municipal bypolls, Kejriwal broke payment promise made to people to attend his rally

Recently Popular

US President Joe Biden casually drops the N-word during Munich Security Conference, accused of racism on social media

The N-word is considered as one of the hateful words that were first uttered in the 17th century. Its origin can be traced back to the Spanish word 'negro', which is often used by white supremacists to deliberately offend the African-American community.

Karnataka: Journalist gets death threats from actor Dhruv Sarja’s fans for exposing anti-Brahmin hate shown in ‘Pogaru’ movie

Journalist Chiru Bhat had exposed the anti-Brahmin hatred shown in Dhruv Sarja's new Kannada movie 'Pogaru'.

‘Give my regards to your puppet master’, Elon Musk tells Jeff Bezos owned Washington Post when they asked him about his busy schedule

Washington Post had published a report claiming the busy schedule of Elon Musk is affecting his electric car company Tesla

After 450 buildings, projects being named after Nehru-Gandhi dynasty, ‘liberals’ outrage about stadium named after PM Modi

Congress workers getting triggered over Narendra Modi stadium is amusing considering there are at least 450 projects, structures, roads, colleges, universities named after the Nehru-Gandhi dynasty.

Narendra Modi cricket stadium in Sardar Patel Sports Enclave at Motera: All you need to know about world’s largest cricket stadium

It is important to note that the name of Sardar Patel has not been removed. However, his name has been elevated to mark the entire sports enclave that includes various other sporting facilities.

Naushad’s video of spitting on Tandoori Roti might be just the tip of the iceberg, several similar videos emerge on social media

UP Police is investigation to see if Naushad was an alone in spitting on Rotis he was making or there is a nexus indulged in such activities
- Advertisement -

 

Connect with us

253,140FansLike
520,114FollowersFollow
23,700SubscribersSubscribe