Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
3) Discuss the highlights of proposed Nyuntam Aay Yojana (NYAY). Do you think this redistributive mechanism will facilitate macroeconomic drivers of growth in India and promise trickle-down economics? Critically analyse. (250 words)
Why this question:
The question is in the light of the recently announced election agenda by the Congress party of – Nyuntam Aay Yojana (NYAY).
Key demand of the question:
The answer must discuss in detail the highlights of the scheme and critically analyse its relevance with respect to the trickle down theory of economics.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Critically analyze – When asked to analyze, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgement.
Structure of the answer
write a few introductory lines bring out the highlights of the newly announced scheme.
Answers must discuss the following aspects :
- Discuss the Nyuntam Aay Yojana’ (NYAY) or minimum income guarantee (MIG) — it proposes a cash transfer of Rs 6,000 a month (or Rs 72,000 a year) to the bottom 20% of the poor. Why it is often being described as a ‘dole’, bad for fiscal health and worse — bad for the beneficiaries themselves because it would apparently make them lazy and dependent.
- Why is NYAY a redistributive mechanism?
- Discuss the logic of trickle-down economics.
- Critically analyse one-size-fits-all fiscal management – NYAY.
- What needs to be done – India’s policymakers need to take changes in global thinking into consideration while framing their policies to fight poverty and inequality..
Conclude with way forward.