Senior Congress leader P. Chidambaram on Wednesday continued his party's promotion of its promised minimum income guarantee scheme, which some have criticised as being a drain on the economy.
Addressing a press conference in Chennai, Chidambaram declared the size of the Indian economy currently was “Rs 200 lakh crore and in nominal terms, it will increase by about 12 per cent per year.” Chidambaram noted in six years, India's GDP would double to Rs 400 lakh crore. Chidambaram noted the allocation for the minimum income guarantee scheme would constitute 1.8 per cent of the GDP.
Chidambaram noted the “expenditure of the Central government and all states put together is about Rs 60 lakh crore and revenues were growing at about 18 per cent.” Chidambaram argued this level of growth meant the finances available to Central and state governments would double in “about five years” and added “we believe India has capacity to implement” the minimum income guarantee scheme.
Chidambaram reiterated the Congress had taken into account “all factors” such as incomes of various sections and consumption patterns and ways to keep a family above the poverty line. Chidambaram claimed experts and economists had “broadly agreed” India had the capacity to implement the minimum income guarantee scheme.
Chidambaram also explained the scheme would be rolled out in phases and cover 5 crore families in these phases. Chidambaram said an expert committee would design implementation of the minimum income guarantee scheme and would be consulted by the government at every stage.
