NYAY – Can it eliminate poverty?

NYAY - gd topic

What is NYAY :-

  • Rahul Gandhi, president of Indian National Congress announced a new poll promise, which is named as Nyuntam Aay Yojana (NYAY).
  • Under this scheme, bottom 20% poorest families (those who are earning less than Rs. 12,000 per month)will get Rs. 6000 per month directly transferred to their bank accounts, if Congress government is elected to power.
  • This scheme requires approx 3.6 lakh crore rupees & will benefit 5 crore poor families, according to Congress Manifesto.

Positive side :-

  • Minimum income can help poor people in providing nutrition to their children and to send them to schools. As a result, they can become contributing members of society in the long run.
  • Subsuming less performing schemes can create funds needed to implement this scheme. Increasing taxes can also help in creating funds.
  • With the minimum income scheme, low paid jobs will not attract people. And thereby employers will pay more, which results in increasing minimum wages.
  • This scheme follows direct cash transfer, and hence eliminates leakages unless there are fake beneficiaries.
  • Congress has promised that this money will be transferred to the women of the family. Hence this will also help in empowering women.

Loopholes :-

  • When there are not enough jobs available for the lower strata of society, minimum income cannot lift people out of poverty. Instead it will make them forever dependent on the welfare.
  • In 2018-19, fiscal deficit is at 3.4%. NYAY requires Rs. 3.6 lakh crores, which may not be possible considering the fiscal deficit.
  • Spending money on development is much more effective than giving out cash directly.
  • People who are working in informal sector have varying income throughout the year. Adding to that agriculture provides seasonal employment. Considering all these factors, it will be very difficult to target bottom 20% poor families, because sometimes they belong to the category and sometimes they won’t.
  • At present, India is the world’s fastest growing economy. But still poverty rates are not deceasing. It is because there is no inclusive growth. Without concentrating on taking steps for inclusive growth, mere minimum income schemes may not work.
  • Inflation may rise.
  • This scheme should not be as a permanent scheme. If it is, the whole purpose of eliminating poverty will be defeated. But subsequent governments may continue the scheme fearing criticism. If it is the case, it may become another burden on India’s economy.
  • There is no incentive to work. And hence NYAY can make people lazy and may stop them looking for work.

Conclusion :-

If it is targeted well, and if leakages are avoided, NYAY can bring atleast a few people out of poverty. But it will be successful only if there is a creation of employment opportunities simultaneously.

 

Your Turn…

Do you think NYAY will be able to eliminate poverty, if implemented? Express your thoughts through the comment section. Subscribe to our blog to read answers to trending GD topics.


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6 comments

  1. NYAY will not work in eliminating poverty from our country because, it is not enough for them, and this scheme also make them lazy and they stop searching jobs this leads to be great problem, they may also use this amount for alcohol, So from my point of view this scheme will not work. This scheme only work when they get jobs along with this scheme.

  2. The scheme is good from theoretical point of view but its not practical for the people of India. Launching this scheme will make people lazy. Instead of making hollow claims about such scheme they should have come out with more employment opportunities. The process of funding this scheme is not clear. They may increase the cost of goods and services, increase the income tax which will be detrimental for the people of this country. It will reduce the consumption capacity for the middle class. The middle class is very important for the overall economy of the country. Also, a sum of 6000 rupees per month is very small for poor families as the size of such families is large. Also, if this money is given to them there is no guarantee that they will use it for their family, they may spent it for alcohols, tobbaco etc. I would like to conclude the discussion by saying that NYAY scheme needs to illustrate a clear cut policy on method of funding, way of its distribution and also make sure that it does all these without hampering fiscal deficit, inflation, taxation burden on rest of India.

  3. I think that NYAY should come into existence. We are obvious with the fact that government make promises and when they come to power , it takes quite longer time for the promises to come into action. or sometimes they even forget about the promises they make . We all know that something is always better than nothing. With NYAY,not all but few people will come out of poverty. so I think that it should come into action for the welfare of at least few families of the nation.

  4. According to me Congress President Rahul Gandhi’s NYAY is not the solution to eradicate the poverty .yes money is essential but If somebody wants to help money forever it is not the solution to eradicate poverty. Govt wants to eradicate the poverty actually it has to create adequate job opportunities for everybody then automatically they will uplift for their livelihood. They will send their children to school. Rather Govt help the poor people forever they will be lazy they will not go to work they think I will stay in the room and will get food. Rahul Gandhi’s scheme it Will take around 3.6 lakh crores rather Govt develope the remote area like roads , electricity, drinking water and transportation system then everybody will be very happy , all these civic amenities are very essential. So help is not the solution yes those are old age people not be able to work govt can help them.

  5. No, I think NYAY or PMKISAN like schemes does not eliminate poverty of India because if you give incentives like this for poor people only 10 or we say 20% of the poor population is uplifted from poverty. if the government really want to do something for poor peoples there are some solutions.
    1) first of all the govt. must create job opportunity with appropriate wages.
    2) if the skillful youth is graduated from schools and colleges their is lots of opportunities are waiting for him that’s why we have to focus on quality and standards of education.
    3) government have to focus on the basic needs of poor people like water, roads, education, electricity, shelter, etc.
    that’s why the standard of living is increases and the overall growth of poor peoples should be done.

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