Upasna Bhardwaj, senior economist at Kotak Mahindra Bank, said a relief package to farmers under the minimum support income measures could cost the government about Rs 75,000 to Rs 80,000 crore a year. Congress president Rahul Gandhi on Monday said that his party will bring Minimum Income Guarantee for the poor of the country if the Congress party is voted power in the Lok Sabha elections this year.
“Our estimate suggests that it’s a wide range of cost but depending on how the coverage and the scheme features would be, it could be anywhere between 0.4 percent of GDP and 0.8 percent of GDP,” Bhardwaj said.
Talking about farm package, she said, “0.4 percent is what we are looking at and that amounts to about Rs 75,000-80,000 crore. So that is where the net cost to the Centre plus state would be and that further could be split between Centre and state. So it could be 50:50 or a certain other proportion.”
“Therefore, to the Centre the cost could be around 0.2 percent of GDP," she added.