Former Reserve Bank of India Governor Raghuram Rajan admitted that the proposed scheme of Nyunatam Aay Yojana of Congress is theoretically good and it can also be effective. However, he also said that for this, the financial realities of the country should be taken care of and if we see the current financial condition, then this much of expense is not possible. Raghuram Rajan said this in a special conversation with media on the occasion of the launch of The Third Pillar.
Significantly, on March 25 Congress President Rahul Gandhi has announced an ambitious plan to benefit the poor population of the country with about 25 crores. He said that if Congress comes to power, then Congress ensure you that we will provide a minimum of Rs.72,000 income per year to 5 Crore poor family. This is called the Nyuntam Aay Yojana or NYAY.
Raghuram Rajan said that the proposed plan of Congress would promote growth at the grassroots level, though he had some doubts about the fact that the Indian economy could afford such a large expenditure. Under this scheme, an expenditure of around 3.6 lakh crore rupees per year can be incurred, which is more than Rs 3.34 lakh crore budget for the Modi government's 2019-20 budget on social schemes. Congress has said that no existing scheme will be eliminated in implementing justice; it means that if Congress comes to power, the government will have to subsidize 6.94 lakh crores for social schemes
Raghuram Rajan said, "If implemented correctly, 'revolutionary changes' can be brought from the Nyuntam Aay Yojana. There are ways to prepare this scheme which can be promoted at the grassroots level. This will allow people to take their own financial decisions themselves. But the question is how will it be implemented? Will it be another scheme like current plans or will there be a revolutionary change in things?" We have an opportunity to implement poverty eradication effectively. If implemented correctly, then, things can be changed in a much better way.
However, he also cautioned that the current situation in the country is not favorable for such a large expenditure. The government has to see what kind of financial scope is. At present, the condition is very tight. After the election, it will have to consider whether the situation is. In the current situation, if asked if we can add more 7 lakh crores and subsidy, then the answer will 'No'. Congress President Rahul Gandhi had said on Tuesday that Raghuram Rajan was also among those top economists, from which the party has consulted to prepare the draft of the Nyuntam, Aay Yojana.
