The biggest takeaway in India's fightback against the covid-19 pandemic, has been the roll out of what is the world's largest food security programme. EPISODE #68
Another comprehensive, informative and interesting article on a very debatable topic.I feel with the fiscal deficits of all the states increasing continuously, is it wise to keep give free ration ,electricity and other benefits to increasing number of people?
Once you start these programs, they cannot be stopped as govt cannot risk becoming unpopular with elections not far away.Agree the Pandemic has been cruel and resulted in increasing poverty , joblessness and hardships but We have to see the financial implications of social welfare schemes also.But I do agree with you India has done a great job in feeding millions of its citizens.
Happy to see you back and sharing your inputs. Prima facie your fear may be well founded. But it may not be so difficult to wean people away. Big worry is not that.
It is about the economy healing fast enough. If this happens then I suspect the govt will start winding it down.
Remember that the extra supply of grains are free. And the govt has extended it six times, implicitly suggesting that there is an inbuilt sunset clause.
A very important article; although initially I found it just a narrative of a well known situation but I sat up and took notice of the steady increase in benefits for ration card holders who could avail the subsidised ration anywhere in the country; mainly due to the linking of ration cards with the biometrics in the adhaar card. A wonderful piece of innovation, which has reached the poor both in the rural and especially in the urban areas. Once again a unique piece of enlightenment gained by reading the weekly Capital Calculus.
Thank you so much Gautam. Indeed the One Nation One Ration Card is a fantastic innovation that cuts red tape and empowers the beneficiary. That it is based on his me grown tech makes it that much better. Look forward to your continued participation in this weekly conversation.
You are making a valid point about the ability to sustain the fiscal payout under such a programme. First this is a one-off situation triggered by a once in a century pandemic. Protecting lives is the first order response and that is what this food security plan was about.
Second, the FSA has to be continued to address the legacy deficits so as to enable livelihood options for the target group. Access to drinking water--Puri is the only city in the country with 24x7 tapped drinking water; in UP prior too 2019 less than 2% of rural households had access to tap water, leave alone drinking water--is one such example. I can go on, but you get the drift.
In short, yes it will cost the exchequer. Frankly there is no option but enabling socio-economic self-reliance for 1.3 billion Indians. The upside is that you will create a more vibrant economy with greater economic participation.
Hope that helped.
Do keep sharing your feedback. Helps generate a debate and clarify issues for everyone, including me.
Anil u are brilliant as ever. After a long long time I had the opportunity to go over ur Amazingly informative to the point article. Wah. Hopefully the negativity on anything BJP would be dented. Thanks for the simplicity and simple language used to explain a very complex situation, after all serving 85crore indians is not easy.
Dear Anil,
Another comprehensive, informative and interesting article on a very debatable topic.I feel with the fiscal deficits of all the states increasing continuously, is it wise to keep give free ration ,electricity and other benefits to increasing number of people?
Once you start these programs, they cannot be stopped as govt cannot risk becoming unpopular with elections not far away.Agree the Pandemic has been cruel and resulted in increasing poverty , joblessness and hardships but We have to see the financial implications of social welfare schemes also.But I do agree with you India has done a great job in feeding millions of its citizens.
Dear Vandana,
Happy to see you back and sharing your inputs. Prima facie your fear may be well founded. But it may not be so difficult to wean people away. Big worry is not that.
It is about the economy healing fast enough. If this happens then I suspect the govt will start winding it down.
Remember that the extra supply of grains are free. And the govt has extended it six times, implicitly suggesting that there is an inbuilt sunset clause.
Best
Anil
A very important article; although initially I found it just a narrative of a well known situation but I sat up and took notice of the steady increase in benefits for ration card holders who could avail the subsidised ration anywhere in the country; mainly due to the linking of ration cards with the biometrics in the adhaar card. A wonderful piece of innovation, which has reached the poor both in the rural and especially in the urban areas. Once again a unique piece of enlightenment gained by reading the weekly Capital Calculus.
Thank you so much Gautam. Indeed the One Nation One Ration Card is a fantastic innovation that cuts red tape and empowers the beneficiary. That it is based on his me grown tech makes it that much better. Look forward to your continued participation in this weekly conversation.
Best
Anil
First some concerns as a citizen.
I'm all for basic welfare, more so in times of crisis, but how long can we continue to expand this and many other such welfare programs?
After 9 years of FSA, we surely need to look at its impact.
And if poverty and extreme poverty are declining, why are we not reducing scope of these programs?
Can we afford to have such a massive and expanding welfare state for perpetuity?
Next year as GE2024 approaches, it's quite possible that GOI would raise Kisan Samman Nidhi
Anyway, brilliant post as always by Anil Sir. Keep them coming:)
Dear Yog,
Thank you for your thoughts and kind words.
You are making a valid point about the ability to sustain the fiscal payout under such a programme. First this is a one-off situation triggered by a once in a century pandemic. Protecting lives is the first order response and that is what this food security plan was about.
Second, the FSA has to be continued to address the legacy deficits so as to enable livelihood options for the target group. Access to drinking water--Puri is the only city in the country with 24x7 tapped drinking water; in UP prior too 2019 less than 2% of rural households had access to tap water, leave alone drinking water--is one such example. I can go on, but you get the drift.
In short, yes it will cost the exchequer. Frankly there is no option but enabling socio-economic self-reliance for 1.3 billion Indians. The upside is that you will create a more vibrant economy with greater economic participation.
Hope that helped.
Do keep sharing your feedback. Helps generate a debate and clarify issues for everyone, including me.
Best
Anil
Anil u are brilliant as ever. After a long long time I had the opportunity to go over ur Amazingly informative to the point article. Wah. Hopefully the negativity on anything BJP would be dented. Thanks for the simplicity and simple language used to explain a very complex situation, after all serving 85crore indians is not easy.
Dear Yugainder,
Always great to hear from you. Thank you for your kind words. Keep sharing your feedback.
Best
Anil
Great research and sharing of data Anil, very educative and an eye opener for many.......👏👏
Dear Kapil,
Thank you so much. Glad it resonated with you.
Best
Anil
😇😇😁😁