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Rahul Gandhi Minimum Income Scheme

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Explained: Can Rahul Gandhi’s basic income scheme be a game changer?

Congress has announced Rs 72,000 a year for poorest 20 per cent. What are the arguments for and against such schemes, and what will it take to implement it? A look at the economics, precedents and challenges ahead.

On Monday, the Congress announced a minimum basic income guarantee scheme, which envisages providing Rs 72,000 annually to the 20% most poor of the country’s families. That would mean five crore families and 25 crore people will benefit directly, the Congress said.

This one-of-its-kind scheme in the world, announced by party president Rahul Gandhi as a key step towards the eradication of poverty, could come under attack for the fiscal costs involved for ensuring its rollout. But can it be a game-changer? The idea recalls a key precedent in welfare politics.

In 1982, the Budget of the M.G. Ramachandran government in Tamil Nadu announced a midday meal programme for all children, named the Chief Minister’s Nutritional Meal Programme. Bureaucrats initially dug their heels in when it came to taking its implementation forward. At a meeting in the state secretariat in Madras, now Chennai, MGR sensed the resistance of bureaucrats. He asked them whether any of them knew what it felt to go without meals, and told them he had experienced it personally in his family, and was determined to introduce a scheme which would ensure that children would not go hungry. The message was that the programme would have to be implemented, irrespective of the costs involved. The scheme was also much criticised by the central government then. Years later, the Centre, the World Bank, economists and governments have showcased the midday meal scheme as a classic study of successful welfare politics.

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