Rahul Gandhi's income plan is viable without hiking taxes
New Delhi: Economics of NYAY announced by Congress President Rahul Gandhi Yojana is not feasible without raising taxes, a top economist has said, supporting the idea of changing the string of Centrally Sponsored Schemes. |
| Rahul Gandhi's income plan is viable without hiking taxes |
Earlier this month, Gandhi unveiled the Nyunatam Ayay Yojana (NYAY) scheme, which gives an assurance of Rs. 72,000 per year or 20 percent of the country's poorest families up to 6,000 rupees per month. He vowed to implement the plan to bring the party to power. "I think that the arithmetic behind it, we have to find new financial resources.
I think this is something we are saying for a while, that we are being taxed as a nation, its ambition, "said Ford Foundation International of the Massachusetts Institute of Technology (MIT). Abhijit Banerjee, professor of economics, told to Times Now
"Without increasing taxes, the economy is not viable. NDA budget is not feasible without raising taxes. Nothing is viable without raising taxes. We have not really tackled that in view of the fact that we have stopped inflation tax, "MIT Professor said that Congress Party has advised about this scheme.
Banerjee said that the UPA was using heavily in inflation tax for "perhaps better or worse" and as a result of high interest rates, the share of government debt in GDP was falling, mostly due to inflation.
"Now we are not using it, we now have very little resources to increase revenue. We are really hurting. This is a problem that has worsened in the last five years. It can be a good thing to kill inflation, but it is something that has made us completely less sustainable.
The eminent economist also had the idea that steps need to be phased or replaced by centrally sponsored schemes and "extremely deceptive subsidies".