India trumps USA ?

It seems so

Here are a few examples :

[ A ]……. In USA

US Congress has passed ( but Senate still debating ), a $ 2,000 billion Economy Stimulus package

[ source : Coronavirus: US Senate snag holds up $2tn disaster aid bill  ]

Highlights :

Ø  The plan includes direct payments of $1,200 to most American adults and aid to help small businesses pay workers.

Ø  Individuals who earn $75,000 or less would get direct payments of $1,200 each. Married couples with household income of up to $150,000 would receive $2,400 and an additional $500 per each child

Objections /  Reservations :

Ø  Republican senators Tim Scott, Rick Scott, Ben Sasse and Lindsey Graham said its major expansion of jobless benefits provided "a strong incentive for employees to be laid off instead of going to work

Ø  They said they would oppose the bill unless it was fixed to ensure workers could not have a higher income while unemployed than in a job

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[ B ]………… In India

[ source :  Modi govt’s largest ration subsidy scheme for 80 Cr Indians  ]

Highlights :

Ø   Narendra Modi-led government has approved the world’s largest food security scheme to benefit 80 crore people across the country

Ø  Every person will get 7 kg ration per month for the next three months, including wheat at a cost of Rs 2 per kg, instead of Rs 27 per kg; and rice at cost of Rs 3 per kg, instead of Rs 37 per kg

What would this cost the Government by way of SUBSIDY ?

Subsidy Rates :  

For RICE     >    Rs 34 / kg  [  Rs 37 – Rs 3 ]

For WHEAT  >    Rs 25 / kg  [  Rs 27 – Rs 2 ]

Monthly Ration ( Kg ) :

800 million ( 80 Cr ) persons x 7 kg / month = 5600 million Kg = 5.6 million tonnes

Total Subsidy Amount / month :

If entire ration was ,

Ø  RICE

          Rs 34 / kg x 5600 million kg = Rs 19040,0 million = Rs 19040  Cr

Ø  WHEAT

    Rs 25 / Kg x 5600 million kg = Rs 14000,0 million = Rs 14000  Cr

Therefore, taking average outlay to :

Ø  Rs 19040 + Rs 14000 =  Rs 33,040 cr / 2  =  Rs  16,520 Cr / month 

Ø  Total subsidy burden over 3 months  =  Rs  49, 560  Cr ( = $ 661 Billion )

Ø  If this program was extended for 12 months , burden  =  $ 2,644 Billion

If extended for a full year, our plan is even bigger than the USA plan of $ 2,000 billion !

And I believe, much better too ! With millions of daily workers having rendered jobless , this subsidized food will help them enormously

Question :

Do we have enough food-grains to sustain such program beyond 3 months ?

Answer :

We need 5600 million kg / month =   5.6 Million tonnes / month

For 3 months , we need              =   5.6 x 3 = 16.8 million tonnes

For 12 months , we need             =  5.6 x 12 = 67.2 million tonnes

By April , we expect FCI ( Food Corporation of India ) food-grain stock = 100 million tonnes

Expected production of food grain in 2019-20  =  292 million tonnes

Hence , no worry on this count !

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Even as I await the press conference of Smt Nirmala Sitharamanji at 1pm this afternoon , I urge fellow citizen to appreciate that , when it comes to caring for the poor , Shri Modi does not waste time , in sloganeering [  Garibi Hatao  ]

He acts upon what Mahatmaji taught him :

“ In the hands of the poor , God appears in the form of a Roti “

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26 March 2020

hcp@RecruitGuru.com