Congress has consulted 'enough' economists on income scheme: Chidambaram

Former finance minister and senior Congress leader, P Chidambaram today said that the party has consulted enough economists on the minimum income support scheme before announcing it.

"We have consulted enough experts in the subject and all of them have broadly agreed that India has the capacity to implement a scheme of this kind," Chidambaram said in a press conference today.

However, he said that for a country like India, such a scheme can only be "rolled out in phases".


Dubbed as 'Nyay' scheme, it was announced by Rahul Gandhi on Monday. As per Congress, it will provide Rs 72,000 per annum to 20 per cent poorest families in the country under the scheme which will benefit 5 crore families and 25 crore individuals directly.

The size of our GDP and the scale of governments expenditure allow us to implement the scheme, he said. "When fully rolled out, it will cost us about 1.8 per cent of GDP," Chidambaram claimed. It won't exceed 2 per cent of GDP, he added.

On the issue of finding out the poorest of the poor, Chidambaram said that there is enough data and talent in the country to identify the bottom five per cent of the country.

He said that this is the direct frontal assualt on poverty and is not a new concept in the world.

Also dispelling notion that most subsidies will be withdrawn to implement the scheme, Chidambaram said there are many subsidies that are implemented to achieve a specific social and economic objective and such ones will not be withdrawn.

Chidambaram also quipped that the Modi govt is too wise to implement Congress’ scheme. He also took potshot at Modi on farmers’ income and for not “giving the promised Rs 15 lakh” to each Indian.

The Congress leader said that the government will insist on opening a bank account in the name of a woman of the family to transfer the amount.

Earlier Paris based World Inequality Lab said that the NYAY scheme would cost about 1.3 per cent of Indian GDP and can be implementable by imposing a wealth tax on super rich.