RaGa’s poll promise to cost economy Rs. 18 Lakh crore
Today, RaGa shocked everyone by announcing that if the Congress party is elected to power, all poor people would be paid Rs. 72,000 per year.
He described it as the “final assault on poverty”.
Today is a historic day..
It is on this day that the Congress party launched its final assault on poverty.
5 Crore of the poorest families in India, will receive Rs. 72,000 Per Year#NyayForIndia is our dream & our pledge.
The time for change has come.
— Rahul Gandhi (@RahulGandhi) March 25, 2019
Naturally, intellectuals were shocked at the grandioseness of the proposal.
They pointed out that the proposal would cost the economy an incalculable sum of Rs. 18 Lakh crore which would have to be funded by the poor taxpayer.
In fact, the sum is 3x India’s fiscal deficit, 6x defence budget and 2x the corporate tax receipts.
Some even described him as a “crazy man”.
How much will @RahulGandhi’s minimum income scheme cost the exchequer?
25 crore poor x Rs 72,000/yr = Rs 18 lakh crore/yr.
That’s 3x India’s fiscal deficit, 6x defence budget & 2x corporate tax receipts.
If it’s only to to 5 crore households, not 25 crore people, divide by 5
— Minhaz Merchant (@MinhazMerchant) March 25, 2019
5 crore families x 72,000 = 3.60 Lakh Crore
Approx per month GST collection = 1 Lakh Crore
Means you wanna donate 4 months of GST collection free of cost.
Why don't you give it from your own pocket?
This is our hard earned money, it's not for your freebies.#choor @narendramodi
— Parth Kalra (@ParthGKalra) March 25, 2019
Crazy Man #RahulGandhi announces Rs 72000 per annum for 20% poorest families.
Assuming 25 Crores (conservatively) as total No of families its 5 Crore families
Total money required Rs 360000 Crores per annum.
I guess even his swiss accounts won't have so much money
— sandip sabharwal (@sandipsabharwal) March 25, 2019
You want to give freebies to win elections, do it from your party fund. You've a birthright over Congress and it's fund, not this country's.
Govt treasury is public money. If you think you can lure poor with our tax money, you are mistaken. Middle class is watching you.
— THE SKIN DOCTOR (@theskindoctor13) March 25, 2019
— Sir Jadeja fan (@SirJadeja) March 25, 2019
However, RaGa was not chastened by the criticism of his proposal by the intellectuals.
He claimed in a belligerent manner that if NAMO can “give Rs 3,50,000 crore to India’s richest, then we can do the same for India’s poorest”.
"If PM Modi can give Rs 3,50,000 crore to India’s richest, then we can do the same for India’s poorest."https://t.co/56DqhlROsT
— The Indian Express (@IndianExpress) March 25, 2019
On an earlier occasion, RaGa has been described as an “Economic Saboteur” for propagating a “double waiver” of farm loans.
States are already bleeding from farm loan waivers and Rahul wants a double waiver, this time by the Centre. Is there no limit to his irresponsibility? Enter Rahul Gandhi, The Economic Saboteur https://t.co/S9Rn4q9YFg via @swarajyamag
— R Jagannathan (@TheJaggi) December 19, 2018
NAMO is on the right track. Opposition is not able to put together any cohesive story
Raamdeo has made it amply clear on a number of earlier occasions that he is a “NAMO Bhakt” and is not much impressed by RaGa.
He has once famously said that “even if Rahul Baba becomes Prime Minister”, India cannot be stopped from being a $10 trillion economy by 2030.
In sharp contrast, Raamdeo heaped rich praise on NAMO. He described him a “strict headmaster” who can discipline the “chaos of 60 years of leaderlessness”.
Dalal Street is gung ho about NAMO coming back to power
In his latest interview, Raamdeo pointed out that Dalal Street is expecting the BJP to win 250-260 seats.
He explained that the market is giving a payoff matrix that 300 is probably 5% chance, 250-there is a 60% chance and 210 has another 30-40% chance.
“The market is actually discounting 230-235. So, if 260 actually happens, the market may take off. Larger the mandate for Modi, he will get a signal that he is on the right track,” he added.
He also pointed out that the opposition has not been able to put together any cohesive story and even Priyanka Gandhi’s entry into the hustings may not help much.
“On the whole, the betting market is saying 250-252 seats for BJP alone. The market will become stronger if this mandate becomes true,” Raamdeo emphasized.
Don’t dislocate the system further
Raamdeo made it clear that he is of the view that NAMO has gone too far and too fast in his quest for reforms.
“My sense is the government should not further dislocate the system,” he said in a firm tone.
He pointed out that the economy is a very complex system and has limited shock-taking capability.
“The economy takes time to come to terms with the new changes. You have changes in RERA, GST, IBC process, demonetisation. You want everything to be formal, compliant and all the bad guys to be out of the system. Now, the government should give a pause to further reforms. They should allow earlier reforms to play out first,” he added.
Foreign investors are playing catch-up game & will increase allocation if NAMO comes back to power
Raamdeo confirmed that foreign investors have developed an insatiable appetite for Indian stocks.
“India has underperformed big time. So, they want to buy more of India. We are also seeing a lot more appetite for India even at an active level. That was not the situation a year back. They are playing a catch-up game and if by chance a determined leadership comes, there will be another opportunity to up the allocation,” he stated.
Next big thematic bet
Raamdeo revealed that “domestic capex” could be the big thing over the next few years.
He pointed that there is short supply in steel, excess capacity in power and balanced demand and supply in cement.
“Once the new government and new policies come, capital goods segment should do well,” he opined.