BJP’s manifesto will not harm the economy, Congress’ manifesto will enrich the common man. BJP Manifesto Has

‘Modi’s guarantee’ will not be a burden on the country’s economy

After the main opposition party Congress released its manifesto ‘Nyay Patra’, now the ruling BJP has also presented its ‘Sankalp Patra’. Regarding the Congress manifesto, many economists have said that the burden on the economy will increase. At the same time, the impact of BJP’s manifesto on the government treasury will be negligible. However, the Congress manifesto is also talking about money reaching the hands of the common man and increasing demand in the economy. Let us understand the complete mathematics…

In fact, in its resolution letter, BJP talked about providing ‘PM Garib Kalyan Anna Yojana’ under the name ‘Modi’s Guarantee’, housing to 3 crore people, cooking gas through pipeline and free electricity to the poor through PM Surya Ghar Free Electricity Scheme. Is. All these schemes are extensions of the ongoing schemes of the present government and provisions for this have been made somewhere in this year’s interim budget also.

How will the manifestos of both the parties affect the budget?

According to an ET news quoting a DBS Bank report, the BJP’s manifesto is actually an extension of the government’s existing schemes. BJP has not announced any new big promise in this. The government has already given space to the expansion of these schemes in its interim budget and has set a target of bringing the fiscal deficit to 5.1 percent of GDP. In such a situation, its burden on the government exchequer will be negligible.

Whereas on the contrary, the Congress manifesto is like a populist budget. In this, many promises have been made like waiver of farmers and education loans, cash transfer of Rs 1 lakh under Mahalakshmi scheme, health scheme with free treatment of Rs 25 lakh, apprenticeship to youth and caste census.

How much will be spent on all these schemes will be decided by how many people come under their purview. DBS Bank’s report states that the government will have to spend 1 to 2.5 percent of GDP on schemes like Basic Universal Income etc. This can become a burden on the country’s economy.

In 2008, when the loans of some farmers were waived off, the burden on the government treasury was equal to 0.9 percent of the GDP. In such a situation, if Congress still implements these announcements, it will affect the country’s economy.

Congress manifesto will make the common man rich

However, economists also maintain one aspect regarding the Congress manifesto that if money reaches the hands of the common man, then the demand in the country will increase. Its effect will be in the expansion of the economy so that the money that goes from the government treasury will give economic growth to the country. Whereas the government will get a large amount of money back in the form of GST.

Regarding this, Arun Kumar, who was a professor of Economics at Jawahar Lal University, says that the Congress manifesto targets the lower income group population of the country. Its focus is on increasing employment. If employment increases in the country, people’s income will increase and it will generate demand in the economy, in which we are seeing a decline since 2017. That is why uneven growth is visible in the country.

He says that the Congress manifesto has been made targeting 94 percent of the country’s population. It does not offer policies for only 6 percent of the rich population. When a poor man gets money, he spends up to 90 percent of his income. Whereas when a rich man gets money, he spends only 5 percent of his income on consumption. This reduces or unequal the demand in the economy.

Pro. Arun Kumar says that even if the Congress government reduces the GST rate, revenue collection will increase due to increase in demand in the market. At the same time, due to increase in people’s income, the direct tax collection of the government is also expected to increase. Due to employment generation, demand will be created in both the organized sector and unorganized sector of the country. The current policies are very much on the supply side, whereas what the country needs is demand. He says that due to decline in consumption in the country, its real GDP growth is currently only between 1 to 2 percent.

News Source ➤

Tags:

Brijesh Pratap
Brijesh Pratap

Hi, I am Brijesh Pratap, a content creator and WordPress website designer, I have been in content writing for more than 3 years. I specialize in creating engaging articles. As a WordPress expert, I design websites for businesses and bloggers, aiming for both visual appeal and impactful content. Join me on this journey of creative exploration and effective online solutions.

We will be happy to hear your thoughts

Leave a reply

Tredmarq
Logo
Compare items
  • Total (0)
Compare
0