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
Rahul,
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
Rs 72,000 per year to 5 crore families? Approx 25 crore people? Will your dynasty fund this #MinimumIncomeGuarantee scheme? https://t.co/cmLQ37q5yZ
— 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.
The government of the day should look after the weak and poor citizens of the state and not focus on facilitating the rich become richer, as has happened in the past many years.
No change is seen in this process in the past 5 years.
All comments here are to preserve the richness of the rich, or is it not?
All the rich guys and even middle class thinks they are super smart and people listen to them and take through social media. No one is going to see the comment from poor guys of what is the reaction to RaGa’s move but they will show with their voting power.
Isn’t it a simple admission by one of the top notch wealth management expert that the real culprit of the state of the economy is demonetisation and botched-up implementation of GST and consecutive implementation of RERA – by the way all these measures are good and should have been done (except demonetisation with the objective of reducing/eradicating black money, etc. which is a hoax – currently the system has more cash liquidity than what was at the time of demonetisation – it is roughly 20% more than what was at the time of demonetisation and the very fact that almost more than 97% of the currency in circulation came back within the banking system itself speaks of the failure of this decision) but they were taken and implemented one after another consecutively with no knowledge of its implementation problem in the economy.
I think good sense would prevail now with this government and it would now take more considerate decision after proper consultation with all the stakeholders or at least the intelligent and knowledgeable people.
It’s time for Rahul to see the light. It’s not that we don’t listen. Is just that he’s not so bright.
He wants to be PM, but he has no clue. He hangs with Sibal and Vadra, the retarted crew.
He thinks Priyanka is saviour and all. He would be better served cleaning the PM,s balls.
He wishes he wins and drags Modi with his lasso. But what’s really gonna happen is Modi putting his boot up his ….
Whatever the middle class or the economists think doesn’t matter now. Every poor and unemployed person will be lured by the 12k free income. I think congress will cross 200 seats easily just like Vajpayee was defeated by poor.
Rich were favoured by the NaMo govt – there is no doubt about it. Poor were given alms (bhiksha) – like the Rs 6000 given to farmer in the budget.
In the meantime, this govt looted through higher GST, especially on services. Each and every service is taxed at 18%, which was 10% before this govt came into power. Whether it is Rent, Insurance, higher education, telephone bills, banking charges… virtually everything. When introduced in 1994 in the wake of economic weakness in the country, it was levied on just 3 services. Now, Services sector covers 60% of our GDP and if 18% is the rate levied on gross billing amount, one can imagine the riches the govt has.
So, what is the purpose of this heavy collection, taken from all people across all economic conditions? Is there a justification that this loot is used only to benefit select few crony capitalists and politicians through corrupt deals like Rafale, rich loan waivers, PSU misappropriations etc?
GST on services should not exceed 10-12% max. Abroad it is in the range of 5-10%.
I agree. Service Tax is the biggest fraud of all successive governments. Service Tax is now levied on more than 60% of India’s GDP and that too with a “negative list” – which means that Service Tax is levied on all kinds of services unless those services are in the “negative list”.
Levying 18% Service Tax on 60% of India’s GDP is a big mockery and fraud on poor citizens of India.
India is the highest TAX collector, where police like politicians collect tax from the Janata to feed themselves so that they can stay or come back to power…god save us. Rich will become mega rich, poor will remain poor forever, brutal truth.Now crores of Janata collected tax will be spent royally on elections