Rahul Gandhi's sop of direct money transfer to 50 million poor families in the country as an electoral promise should rattle every right thinking and discerning Indian citizen.

One is seeing with a deep sense of concern, how a particular breed of politicians, represented by the Congress bandwagon led by Rahul Gandhi, is rapidly following theism of neopatrimonialism and doing everything to usurp and stay riveted to the seats of power.

There is a background to the Congress politics revolving around neopatrimonialism. The Hugo Chavez model of politics (the world is aghast by what's happening in Venezuela today) was followed to a great extent by the previous Manmohan Singh led UPÀ government at the Centre, presided over by the Congress party led by Sonia Gandhi and her band of loyalists.

Venezuelan President Hugo Chávez had crafted the Bolivian Missions focusing on social sectors and his populist policy included "redistribution of wealth". It is now clearly documented that in the early 2000s, when oil production brought rich dividends to the Bolivarian Republic of Venezuela due to soaring oil prices, the Chavez Government went on a spending spree on social programmes without caring a hoot for future eventualities. The upside of Chavez's Bolivian model was a big drop in inflation and unemployment and the downside, especially linked to the oil price collapse and the US sanctions is the economic turmoil that has gripped Venezuela, especially during the disputed second term of Nicolás Maduro, who succeeded Chavez in March 2013.

The Congress-led UPA government at the Centre, went a step ahead and put itself on the pedestal and all along pretended as if they were the only ones to shape the destiny of Indian people through newly created Acts passed by&nbsp;Indian Parliament to guarantee jobs, food, and education. While doing this they also aped the cash transfer policy that was being followed in Brazil and Mexico without bothering even an iota about its pitfall and the impact it would leave on the middle-class wage earners and the economic growth of the country.

It will be interesting to recall how on the eve of the 2014 Parliamentary election, UPA-II led by Manmohan Singh had launched the ambitious scheme of "direct cash transfer" of subsidy to bank accounts of beneficiaries with the then finance minister P Chidambaram describing the move as a "game changer".

During the run-up to the 2019 Lok Sabha election, Rahul Gandhi has announced that the poorest families in India will receive Rs. 72,000 per year. “We will wipe out poverty by guaranteeing a minimum income to Rs 5 crore to 20 per cent of the poorest families," he said.

The Congress functionaries are describing this as a historic decision. Addressing media persons at the Madhya Pradesh Congress headquarters in Bhopal on Tuesday, the chief spokesperson of the party for Madhya Pradesh, Shobha Oza, lashed out at the BJP leaders criticising Rahul Gandhi’s decision and dubbed their party as anti-poor.&nbsp;

She was emphatic in pointing out that some front ranking economists have studied the intricacies involved, vetted and validated Rahul Gandhi’s decision for direct cash transfer to the poor. One of her co-spokesperson even came on the sidelines and said that former Reserve Bank Governor Raghuram Rajan and a few other top economists would soon be speaking in support of this policy. &nbsp;

The input by the Congress spokesperson that in next few days some renowned economists are going to openly support the Congress party’s “direct cash transfer” plan to "wipe out poverty" would mean that these economists would be supporting a move that would eat into the vitals of economic growth in India. &nbsp;

It is a move that has nothing to do with channelising resources for building a robust economic infrastructure, improving education and skill development, creating jobs and adding to the purchasing power of the people through multifarious economic activities and thereby improving their quality of life. If the Congress move brings in votes and power, it will benefit immensely the wheeler-dealers and agents in the corridors of power who are not used to living in the wilderness. Let's not talk of crony capitalists. One has seen them flourish everywhere under Congress rule. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.) 
&nbsp;

Rahul Gandhi's sop of direct money transfer to 50 million poor families in the country as an electoral promise should rattle every right thinking and discerning Indian citizen.

Rahul Gandhi's sop of direct money transfer to 50 million poor families in the country as an electoral promise should rattle every right thinking and discerning Indian citizen. One is seeing with a deep sense of concern, how a particular breed of politicians, represented by the Congress bandwagon led by Rahul Gandhi, is rapidly following theism of neopatrimonialism and doing everything to usurp and stay riveted to the seats of power. There is a background to the Congress politics revolving around neopatrimonialism. The Hugo Chavez model of politics (the world is aghast by what's happening in Venezuela today) was followed to a great extent by the previous Manmohan Singh led UPÀ government at the Centre, presided over by the Congress party led by Sonia Gandhi and her band of loyalists. Venezuelan President Hugo Chávez had crafted the Bolivian Missions focusing on social sectors and his populist policy included "redistribution of wealth". It is now clearly documented that in the early 2000s, when oil production brought rich dividends to the Bolivarian Republic of Venezuela due to soaring oil prices, the Chavez Government went on a spending spree on social programmes without caring a hoot for future eventualities. The upside of Chavez's Bolivian model was a big drop in inflation and unemployment and the downside, especially linked to the oil price collapse and the US sanctions is the economic turmoil that has gripped Venezuela, especially during the disputed second term of Nicolás Maduro, who succeeded Chavez in March 2013. The Congress-led UPA government at the Centre, went a step ahead and put itself on the pedestal and all along pretended as if they were the only ones to shape the destiny of Indian people through newly created Acts passed by Indian Parliament to guarantee jobs, food, and education. While doing this they also aped the cash transfer policy that was being followed in Brazil and Mexico without bothering even an iota about its pitfall and the impact it would leave on the middle-class wage earners and the economic growth of the country. It will be interesting to recall how on the eve of the 2014 Parliamentary election, UPA-II led by Manmohan Singh had launched the ambitious scheme of "direct cash transfer" of subsidy to bank accounts of beneficiaries with the then finance minister P Chidambaram describing the move as a "game changer". During the run-up to the 2019 Lok Sabha election, Rahul Gandhi has announced that the poorest families in India will receive Rs. 72,000 per year. “We will wipe out poverty by guaranteeing a minimum income to Rs 5 crore to 20 per cent of the poorest families," he said. The Congress functionaries are describing this as a historic decision. Addressing media persons at the Madhya Pradesh Congress headquarters in Bhopal on Tuesday, the chief spokesperson of the party for Madhya Pradesh, Shobha Oza, lashed out at the BJP leaders criticising Rahul Gandhi’s decision and dubbed their party as anti-poor. She was emphatic in pointing out that some front ranking economists have studied the intricacies involved, vetted and validated Rahul Gandhi’s decision for direct cash transfer to the poor. One of her co-spokesperson even came on the sidelines and said that former Reserve Bank Governor Raghuram Rajan and a few other top economists would soon be speaking in support of this policy. The input by the Congress spokesperson that in next few days some renowned economists are going to openly support the Congress party’s “direct cash transfer” plan to "wipe out poverty" would mean that these economists would be supporting a move that would eat into the vitals of economic growth in India. It is a move that has nothing to do with channelising resources for building a robust economic infrastructure, improving education and skill development, creating jobs and adding to the purchasing power of the people through multifarious economic activities and thereby improving their quality of life. If the Congress move brings in votes and power, it will benefit immensely the wheeler-dealers and agents in the corridors of power who are not used to living in the wilderness. Let's not talk of crony capitalists. One has seen them flourish everywhere under Congress rule. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Congress's minimum income plan will eat into the vitals of economic growth

The Election Commission is learnt to have decided to seek details of remarks made by Niti Aayog vice-chairman Rajiv Kumar in which he had attacked Congress over minimum income guarantee promise.

Sources in the poll panel said, since Kumar is part of "bureaucratic executive", such remarks may be violative of the model code.

"It is not a case of one politician attacking the other or one party attacking the other," said a functionary.

Kumar had accused the Congress of promising the moon to win elections.&nbsp;

He had also tweeted, saying "The proposed income guarantee scheme fails the economics test, fiscal discipline test and execution test".

In another tweet, Kumar had claimed that "true to its past record of promising the moon to win elections, Congress President announces a scheme that will bust fiscal discipline, create strong incentives against work and which will never be implemented."

Kumar is reported to made similar remarks in an interview also.

At a press conference here on Monday, Rahul Gandhi announced that 20 per cent families belonging to the poorest category will be given Rs 72,000 each annually as minimum income if Congress comes to power.&nbsp;

The Election Commission is learnt to have decided to seek details of remarks made by Niti Aayog vice-chairman Rajiv Kumar in which he had attacked Congress over minimum income guarantee promise.

The Election Commission is learnt to have decided to seek details of remarks made by Niti Aayog vice-chairman Rajiv Kumar in which he had attacked Congress over minimum income guarantee promise. Sources in the poll panel said, since Kumar is part of "bureaucratic executive", such remarks may be violative of the model code. "It is not a case of one politician attacking the other or one party attacking the other," said a functionary. Kumar had accused the Congress of promising the moon to win elections. He had also tweeted, saying "The proposed income guarantee scheme fails the economics test, fiscal discipline test and execution test". In another tweet, Kumar had claimed that "true to its past record of promising the moon to win elections, Congress President announces a scheme that will bust fiscal discipline, create strong incentives against work and which will never be implemented." Kumar is reported to made similar remarks in an interview also. At a press conference here on Monday, Rahul Gandhi announced that 20 per cent families belonging to the poorest category will be given Rs 72,000 each annually as minimum income if Congress comes to power.

EC to seek details of Niti Aayog vice-chairman's remarks against Congress over minimum income promise

Finance Minister Arun Jaitley on Monday put out his counter to Congress president Rahul Gandhi's “final assault on poverty”.

Jaitley termed Rahul Gandhi's promise of a minimum income of 72,000 annually to 20 per cent families in poorest of the poor category as the biggest bluff.

Jaitley validated his statement by putting forward simple math that sought to negate the calculations put forward by Rahul Gandhi while justifying Congress' minimum income programme.

“If the Congress Party’s announcement is tested on simple arithmetic, Rs.72,000 for five crore families works out to be Rs.3.6 lakh crore, which is less than 2/3rd of what is being given,” Jaitley said.

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The latest announcement of the Congress Party if tested on simple arithmetic then ₹72,000 is less than 2/3rd of the existing DBT under Modi government, which averages ₹1.068 lakh annually. So what is being claimed by the Congress Party - A bluff announcement.
— Chowkidar Arun Jaitley (@arunjaitley) <a href="https://twitter.com/arunjaitley/status/1110172294679285760?ref_src=twsrc%5Etfw">March 25, 2019</a></blockquote>
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Earlier in the day, Congress President Rahul Gandhi announced that his party, if voted to power, would give a minimum income guarantee of Rs 6,000 per month to 20 crore household. He said that the move would bring the people out of poverty.

However, the Finance Minister said that the Congress always promised ‘Garibi Hatao’ but never actually worked on it.

“This announcement is an admission of the fact that neither Indiraji nor her son and certainly not the UPA Government controlled by her descendants, was able to remove poverty,” he added.

The minister further said that the Congress and the Gandhi family, in particular, has ruled India for over two-thirds of the period since the ‘Garibi Hatao’ slogan was given “If it has failed to even address poverty during this period, why should India believe it? Jaitley asked.

(With inputs from agencies)

Finance Minister Arun Jaitley on Monday put out his counter to Congress president Rahul Gandhi's “final assault on poverty”. Jaitley termed Rahul Gandhi's promise of a minimum income of 72,000 annually to 20 per cent families in poorest of the poor category as the biggest bluff.

Finance Minister Arun Jaitley on Monday put out his counter to Congress president Rahul Gandhi's “final assault on poverty”. Jaitley termed Rahul Gandhi's promise of a minimum income of 72,000 annually to 20 per cent families in poorest of the poor category as the biggest bluff. Jaitley validated his statement by putting forward simple math that sought to negate the calculations put forward by Rahul Gandhi while justifying Congress' minimum income programme. “If the Congress Party’s announcement is tested on simple arithmetic, Rs.72,000 for five crore families works out to be Rs.3.6 lakh crore, which is less than 2/3rd of what is being given,” Jaitley said. The latest announcement of the Congress Party if tested on simple arithmetic then ₹72,000 is less than 2/3rd of the existing DBT under Modi government, which averages ₹1.068 lakh annually. So what is being claimed by the Congress Party - A bluff announcement. — Chowkidar Arun Jaitley (@arunjaitley) March 25, 2019 × Earlier in the day, Congress President Rahul Gandhi announced that his party, if voted to power, would give a minimum income guarantee of Rs 6,000 per month to 20 crore household. He said that the move would bring the people out of poverty. However, the Finance Minister said that the Congress always promised ‘Garibi Hatao’ but never actually worked on it. “This announcement is an admission of the fact that neither Indiraji nor her son and certainly not the UPA Government controlled by her descendants, was able to remove poverty,” he added. The minister further said that the Congress and the Gandhi family, in particular, has ruled India for over two-thirds of the period since the ‘Garibi Hatao’ slogan was given “If it has failed to even address poverty during this period, why should India believe it? Jaitley asked. (With inputs from agencies)

Rahul Gandhi’s minimum income guarantee is a bluff announcement, says Arun Jaitley

The Hugo Chavez model of politics pivoting around the concept of neopatrimonialism was followed with determined zeal by the previous Manmohan Singh-led UPA government at the Centre, presided over by the then Congress party president Sonia Gandhi.

The drawback of the model that was carved and implemented to the hilt by Venezuelan President Hugo Chavez between 2002 and 2013, a period that almost coincided with the Manmohan Singh's rule in India, was more tuned to addressing social inequalities rather than structural inequalities.

The present job crisis in India can be attributed and described as a direct fallout of the politics of populism practiced by the Congress party when it was in power between 2004 and 2014 since equity distribution was lopsided and the growth on economic infrastructure front also was compromised with maximum focus on direct cash transfer to the deprived sections through acts passed by the Indian Parliament to guarantee jobs, food, and education. While doing this, they typically aped the cash transfer policy that was being followed in Brazil and Mexico without bothering about the impact it would leave on the middle class wage earners and the economic growth of the country.

Following on the same footsteps, present Congress president Rahul Gandhi announced at a "Kisan Abhaar Sammelan" at Raipur this Monday that his party would implement a minimum income guarantee scheme for every poor if his party comes to power at the Centre this year.

Former finance minister P Chidambaram has laced the Congress decision regarding "minimum income guarantee" with the assertion that it would "wipe out poverty" and uplift about one-fifth of India's population that lacks the purchasing power to provide itself food, clothing and shelter.

Chidambaram has defended the decision by pointing out that India owes itself the responsibility of mobilising resources to rescue the deprived sections caught in the trap of poverty. For this purpose only 1.5 per cent of the GDP would be required and there should be no difficulty in meeting the target, he adds.

Before the nation goes to polls, the Congress party, through the sop of "minimum income guarantee", has tried to address that section of the Indian population which is suffering the most due to joblessness and poverty. According to basic estimates their number is huge - about 200 million. Obviously, the Congress party would like to use them as a vote bank in the coming parliamentary election.

Scarcity of jobs is a burning problem that is haunting the NDA government led by Narendra Modi at the Centre in a big way as its five year term is nearing completion.

Joblessness in India is an issue that has caught the attention of analysts in neighbouring China. Global Times, published under China's official People's Daily, also points to growing discontent, being faced by Prime Minister Modi. Hu Weijia, a reporter with the Global Times says: "If New Delhi restricts Chinese investment, the move will unavoidably cut job opportunities for young people (In India)."

Asian Infrastructure Investment Bank (AIIB) also has expressed concerns about financing and the lending environment in India "due to the collapse of Indian infrastructure development and high rate of non-performing assets among Indian banks" in its inaugural Asian Infrastructure Finance report released in Beijing on Tuesday.

The AIIB report talks of the downward trajectory when it comes to India's infrastructure transaction activity in terms of total completed and ongoing transactions each year from 2014 to 2016.

Economists and analysts of the long-term South Asian scenario, especially in the backdrop of the China-US trade disputes that have got aggravated by the US President Donald Trump's decision to impose tariffs on Chinese imports, have started talking of the advantages of Chinese companies investing in India's labour intensive industries. The Global Times has underscored that the Modi administration needs good news in terms of job growth ahead of the upcoming general election.

The projection by commentators exploring the prospects of mutual gain by both India and China under the current global scenario notwithstanding, what cannot be ignored is that the clock is ticking for Modi. Come elections and the top bulb of the sandglass will soon be empty.

Instead of populism, it is important at this juncture to address the issue of highly unequal levels of development, human development index and lopsided distribution of equity. Seeking investments and channelising resources for the purpose of building the economic infrastructure, so essential for improving the quality of life of the people across the board, should be the priority. Ahead of elections, the Modi government will have to take the Congress head on. Without wasting time, it will have to place on the table a policy design for evolving and creating a vibrant job market in India.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The Hugo Chavez model of politics pivoting around the concept of neopatrimonialism was followed with determined zeal by the previous Manmohan Singh-led UPA government at the Centre, presided over by the then Congress party president Sonia Gandhi.

The Hugo Chavez model of politics pivoting around the concept of neopatrimonialism was followed with determined zeal by the previous Manmohan Singh-led UPA government at the Centre, presided over by the then Congress party president Sonia Gandhi. The drawback of the model that was carved and implemented to the hilt by Venezuelan President Hugo Chavez between 2002 and 2013, a period that almost coincided with the Manmohan Singh's rule in India, was more tuned to addressing social inequalities rather than structural inequalities. The present job crisis in India can be attributed and described as a direct fallout of the politics of populism practiced by the Congress party when it was in power between 2004 and 2014 since equity distribution was lopsided and the growth on economic infrastructure front also was compromised with maximum focus on direct cash transfer to the deprived sections through acts passed by the Indian Parliament to guarantee jobs, food, and education. While doing this, they typically aped the cash transfer policy that was being followed in Brazil and Mexico without bothering about the impact it would leave on the middle class wage earners and the economic growth of the country. Following on the same footsteps, present Congress president Rahul Gandhi announced at a "Kisan Abhaar Sammelan" at Raipur this Monday that his party would implement a minimum income guarantee scheme for every poor if his party comes to power at the Centre this year. Former finance minister P Chidambaram has laced the Congress decision regarding "minimum income guarantee" with the assertion that it would "wipe out poverty" and uplift about one-fifth of India's population that lacks the purchasing power to provide itself food, clothing and shelter. Chidambaram has defended the decision by pointing out that India owes itself the responsibility of mobilising resources to rescue the deprived sections caught in the trap of poverty. For this purpose only 1.5 per cent of the GDP would be required and there should be no difficulty in meeting the target, he adds. Before the nation goes to polls, the Congress party, through the sop of "minimum income guarantee", has tried to address that section of the Indian population which is suffering the most due to joblessness and poverty. According to basic estimates their number is huge - about 200 million. Obviously, the Congress party would like to use them as a vote bank in the coming parliamentary election. Scarcity of jobs is a burning problem that is haunting the NDA government led by Narendra Modi at the Centre in a big way as its five year term is nearing completion. Joblessness in India is an issue that has caught the attention of analysts in neighbouring China. Global Times, published under China's official People's Daily, also points to growing discontent, being faced by Prime Minister Modi. Hu Weijia, a reporter with the Global Times says: "If New Delhi restricts Chinese investment, the move will unavoidably cut job opportunities for young people (In India)." Asian Infrastructure Investment Bank (AIIB) also has expressed concerns about financing and the lending environment in India "due to the collapse of Indian infrastructure development and high rate of non-performing assets among Indian banks" in its inaugural Asian Infrastructure Finance report released in Beijing on Tuesday. The AIIB report talks of the downward trajectory when it comes to India's infrastructure transaction activity in terms of total completed and ongoing transactions each year from 2014 to 2016. Economists and analysts of the long-term South Asian scenario, especially in the backdrop of the China-US trade disputes that have got aggravated by the US President Donald Trump's decision to impose tariffs on Chinese imports, have started talking of the advantages of Chinese companies investing in India's labour intensive industries. The Global Times has underscored that the Modi administration needs good news in terms of job growth ahead of the upcoming general election. The projection by commentators exploring the prospects of mutual gain by both India and China under the current global scenario notwithstanding, what cannot be ignored is that the clock is ticking for Modi. Come elections and the top bulb of the sandglass will soon be empty. Instead of populism, it is important at this juncture to address the issue of highly unequal levels of development, human development index and lopsided distribution of equity. Seeking investments and channelising resources for the purpose of building the economic infrastructure, so essential for improving the quality of life of the people across the board, should be the priority. Ahead of elections, the Modi government will have to take the Congress head on. Without wasting time, it will have to place on the table a policy design for evolving and creating a vibrant job market in India. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)