Prime Minister Modi has announced the implementation of a variety of expensive changes to the Indian government. Critics have suggested that such decisions, like extending federal aid to all farmers, is a ploy to gain political support for the upcoming general election.
New changes include assisting over 620 million Indian citizens with a basic income of 6,000 rupees, or just shy of $84 USD, per year. The government also announced that the current minimum taxable income of 250,000 rupees will be doubled. Opposition groups have claimed that these changes are only to gain political support for Modi’s current ruling party, the Bharatiya Janata Party (BJP). With a current trade deficit of $13.08 USD, Modi has received massive amounts of kickback from competing parties. To make matters worse, it was recently revealed that India is facing it’s highest rate of unemployment in 45 years.
Modi’s decisions could very well be a ploy to gain political support for his party. Nonetheless, he is providing support to the nation’s majority population, who arguably need it the most. 6000 rupees is a considerable amount of money, and experts say that it can go a long way if implemented correctly. This government aid is expected to be in effect until the end of the year unless the winner of the upcoming election decides to terminate it early.
The elections are held in the months of April and May, which Modi seems to be preparing for, despite the waning support the public has with the BJP. Recent polls have suggested that the BJP may lose its position as the majority party. One of the major opposition parties in Congress mentioned a similar federal aid program if they win the election. Analysts have suggested that the major parties of India are going through a period of competitive populism.
Congress spokesperson Salman Soz claimed that the true issue in the Indian government is the rising unemployment rates, and that this momentary economic stimulation would only be “tinkering around the edges” of the country’s true crisis.