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THE GIST of Editorial for UPSC Exams : 06 APRIL 2019 (More fiscal imprudence (Indian Express)
More fiscal imprudence (Indian Express)
Mains Paper 4: Social Justice
Prelims level: NYAY
Mains level: Welfare schemes for vulnerable sections of the population by the
Centre and States and the performance of these schemes
Context
- NYAY assured minimum income of Rs 72,000 per year to the poorest 20 per cent is yet another step that will lead India inexorably to bankruptcy sooner than later.
- NYAY (Nyuntam Aay Yojana) is expected to cost the exchequer a staggering Rs 3,50,000 crore each year, almost 2 per cent of the country’s GDP.
Background
- Over a five year period, this scheme will cost the exchequer at least Rs 17,50,000 crore.
- Will the amount of Rs 6,000 per month be in addition to other benefits that a person is entitled to under other Central or state government schemes?
- Do we have adequate and reliable data to identify the “poorest 20 per cent”?
- Is the entire funding to be done by the Centre?
What are the sources to pay Rs 3,50,000 crore each year?
- Sadly, India is already among the most heavily taxed nations.
- Our corporate taxes (at 35 per cent) are much higher than developed countries.
- Strong resentment against high GST cripple industrial growth and no scope for more borrowings as it will vastly increase the fiscal deficit.
- The deleterious consequences of the Indian Bankruptcy Code is that lesser and lesser funds are now available for investments in industry, education, public health, defence and other essential services.
- The grant of free power and numerous farm subsidies has not resolved the agrarian crisis.
- Despite serious calamities like cyclones, loans were never waived in Bangladesh but were rescheduled.
- The NYAY scheme will lead to colossal corruption and misuse large-scale leakage.
- Mindless growth of welfare schemes that make India’s economic foundations increasingly weak.
- Manufacturing has slowed down and we do not have a competitive edge in any industrial or service vertical except software.
Online Coaching for UPSC PRE Exam
General Studies Pre. Cum Mains Study Materials
Prelims Questions:
Q.1) Recently Aelous satellite was launched with the objective of:
A. Human Settlement on Mars
B. Searching Ice Water on Europa
C. Tracking Global Winds
D. Study of Asteroids
Answer: C