The Congress Government at the Helm of affairs in India over the past 6 to 7 years have enhanced the Fiscal Deficit by overspending on so called Social Projects like the MNREGA with massive corruption and leaving the state coffer empty. Adding to this was a series of Scams in 2008-09 – Spectrum Scam, SEZ / Land Bank Scam Across India and finally the CommonWealth Games Scam.
The opposition cornered the Congress government headed by Economist Dr. Singh but remotely controlled by others. The spineless Prime Minister under pressure from Congress approved the Food Security Bill [as though theiri s a massive famine in India] in a Cabinet meeting which will now be tabled in the parliament. Modus Operandi of the Congress Government – Appeal the Largest Vote Bank of Uttar Pradesh facing state election in 3 months from now with this Food Security Bill.
Food Security bill deals with ~63% of the country’s population with 75% in rural India (of which 46% is priority) and 50% in urban centres (of which 28% is priority). The bill aims at an entitlement of 7kg of food grains per person per month to priority households at a cost of INR3/kg for wheat, INR2/kg for rice and INR1/kg for coarse grain.
At a time when the domestic economy is facing heavy headwinds, external economy remaining in a fragile state and the fiscal deficit is expected to be way higher than the budgeted, introduction of the food security bill would further worsen the macroeconomic situation in the country.
High costs: While the direct impact of the Food Security Bill is expected to be ~INR950bn per year, the total financial liability.
Corruption & Leakages: Currently, there are serious lapses in the Public Distribution System (PDS) which translate into huge leakages. In fact, a Planning Commission study (2005) has estimated a leakage of ~58% in Below Poverty Line (BPL) category grains in the PDS.
Hope the intelligent Indian voter will choose the right Party to come to Power in UP which can provide Education to Children, Electricity, Roads and a Happy Home to live rather than a Scam Ridden Congress Government stooping to the lowest level in Indian Politics.
All social welfare schemes are poorly implemeted and particularly MNREGA gives wage even without work, making rural poor lazy. Even if we imagine that Food security bill will’Provide complete food security” for the poor- identifying the Priority and General category for the scheme itself will be a uphill task As usual political influence and corruption will play a huge role in deciding the beneficieries