Minimum income support scheme of Congress will enhance production: P Chidambaram

CHENNAI: The minimum income support scheme, promised by the Congress ahead of the Lok Sabha elections, will enhance the country’s production capacity and ensure food and livelihood of the poor, said P Chidambaram, former Union finance minister.

Talking to media persons in Chennai on Wednesday, he said a large number of people were freed from poverty during the last seven decades. But, even now a section are suffering from poverty. 

“We have drawn up the scheme for targeting the families still below the poverty line. Five crore families will benefit from this scheme and ultimately, 25 crore people will be beneficiaries. We have considered all aspects and statistics and then arrived at the decision to offer Rs 72,000 per year to each poor family,” he said.

A  growing Indian economy will make it possible to implement the large-scale cash benefit scheme, the former Union Finance Minister said, adding that the revenue of the State and the Centre will double in the next five years (due to economic growth) and hence, it would be possible to implement the scheme. “We can implement the scheme the way we did MGNREGS,” he observed.

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Speaking about the funds for the scheme, Chidambaram said, “The size of our GDP and the scale of Central and State governments’ income and expenditure will give us the capacity to fund this programme. When all five crore families are covered by the scheme, it will cost us about 1.8 per cent of GDP.” 

The scheme will be rolled out in phases he said, adding that an expert committee would be set up for its implementation. The panel will design the scheme at every stage and it will be consulted before moving to the next stage.

Replying to a question about the reason for poverty still prevalent in the country, Chidambaram said that at the time of Independence, 90 per cent of people were in poverty. Even two or three decades ago, 70 per cent lived in poverty. Today the poverty rate, according to various estimates, is 20-22 per cent. The best way to eradicate poverty totally is direct cash transfer, he noted.

About the criticism of the minimum income support scheme, Chidambaram said that even when 100 days’ rural employment scheme was introduced, several detractors had said it was not possible. But now the BJP government itself has agreed that the scheme is beneficial,  he said.

About criticism
Chidambaram said that even when 100 days’ rural employment scheme was introduced, several detractors had said it was not possible