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What is the News?
The Congress Party has promised to implement the Nyuntam Aay Yojana (NYAY) in Kerala if voted to power.
About Nyuntam Aay Yojana(NYAY):
- NYAY is a proposed minimum income guarantee scheme. It was first proposed during the 2019 Lok Sabha elections.
Key Features of NYAY Scheme:
- Beneficiaries: The target population of the Scheme will be 5 crore families. This constitutes the poorest 20% of all families.
- Benefits: Each family will get a guaranteed cash transfer of Rs. 72,000 a year.
- Bank Account: The money will transfer to the account of a woman of the family who has a bank account. If she doesn’t have the account, they will be urged to open a bank account.
- Economic Cost: The estimated cost will be <1% of GDP in Year 1 and <2% of GDP in Year 2 and thereafter. As the nominal GDP grows and families move out of poverty, the cost will decline as a proportion of GDP.
- Implementation: The NYAY Scheme will become a joint scheme of the Central and State Governments.
- Funding: New revenues and rationalisation of expenditure will fund the new scheme. Current merit subsidy schemes that are intended to achieve specific objectives will be continued along with the NYAY scheme.
Source: Indian Express
