Wednesday, 10 April 2019

NYAY scheme the poll promise of the Congress Party


There are   supporting arguments for direct cash transfer to the poor as promised by the Congress party resulting in their higher productivity based on Behavioral  economics theories and the success of this scheme in various nations. Behavioral  economics seeks to complement traditional approaches to economics by incorporating insights from psychology and human behavior, and taking a behavioral approach allows us to understand a host of behaviors that are critical to the success of a variety of development policies. It is true that , when the poorest of the nation get direct cash transfer, they would like to satisfy their hunger primarily and their spending behavior would center around food expenditure . Then, other basic needs would be satisfied .This  type of behavior regarding use of cash transfer would reflect on their productivity through health improvement . Through linkage effect on the economy, job   opportunities would be created and reduce the magnitude of poverty in a nation. When the Congress Party’s NYAY scheme meant for the 20% of the poor is  criticized by the major opposition parties on the basis of their doubts on  it’s likely positive impact of this scheme and source of funding , the success story of this scheme in other nation will encourage them to be firm on this promise.

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