TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    LeT’s Muridke Exit: Bahawalpur the New Hub

    Pakistan’s Terror Map Shifts as Lashkar-e-Taiba Flees 400 km South from Muridke to Bahawalpur After Op Sindoor

    Even Terrorists Are Treated Better": Imran Khan Alleges Targeted Abuse

    Treated Worse Than Terrorist: Imran Khan Blames Army Chief Asim Munir for Jail Torture

    Raj Thackeray Warns BJP MP: ‘We’ll Drown You in Mumbai’s Sea’ Over Marathi Row

    Dubo Dubo Ke Maarenge : Raj Thackeray Threatens to Drown BJP MP Nishikant Dubey

    Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On

    Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Air India Crash: US Safety Board Urges Caution Amid Ongoing Investigation

    Air India Crash: US Safety Board Urges Caution Amid Ongoing Investigation

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    India Achieves 50% Non-Fossil Fuel Power Capacity

    India Achieves 50 pc Non-Fossil Fuel Power Capacity, Five Years Ahead of Schedule

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Strategic Shift: Bitra Island for Defence Forces

    India Secures Strategic Edge: Centre Moves to Acquire Bitra Island in Lakshadweep for Defence Forces

    India Successfully Tests Prithvi-II and Agni-I Ballistic Missiles

    India Successfully Tests Nuclear Capable Agni-I & Prithvi-II Ballistic Missiles in Odisha, Strengthens Strategic Deterrence

    Successful Test of ‘Akash Prime Air Defence System’ in Ladakh

    Successful Test of ‘Akash Prime Air Defence System’ at 15,000 Feet in Ladakh

    CDS Chauhan: India Needs Tomorrow’s Tech to Win Today’s Wars

    India Needs Tomorrow’s Tech to Win Today’s Wars, Says CDS Anil Chauhan; Urges Indigenous Tech Push

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    TRF Declared Global Terror Outfit After India’s Swift Diplomatic Strike

    India’s 72-Hour Blitz After Pahalgam Gets TRF Blacklisted by Washington

    TRF Ban a Win for India: Renewed Momentum to Greylist Pakistan at FATF

    TRF Sanctioned: Will Pakistan’s Terror Nexus Drag It Back to FATF Grey List?

    US Declares Pakistan’s Lashkar Proxy TRF a Terror Outfit,

    Pahalgam Massacre: US Declares Pakistan’s Lashkar Proxy TRF a Terror Outfit, Cites Trump’s Justice Call

    Baloch Insurgents Kill 29 Soldiers: Pakistan Army Losing Control in Balochistan

    Is Balochistan Slipping Away from Pak? 29 Soldiers Killed as BLA, BLF Launch Simultaneous Attacks

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    NCERT Textbook Reveals Mughal Religious Intolerance

    Ruthless Babur, Violent Akbar, Destructive Aurangzeb: NCERT Textbook Reveals Mughal Religious Intolerance

    India Built Gardens Long Before Babur Dreamt of Charbagh

    Before the Mughals: India’s Civilisation Built Gardens Long Before Babur Dreamt of Charbaghs

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Echoes of the Cholas in Today’s Bharat

    Conqueror of the Seas: Rajendra Chola and the Rise of Naval Bharat

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Review Batery Casino India

    Review Batery Casino India

    What Learners Say about Simplilearn AI Course Reviews?

    What Learners Say about Simplilearn AI Course Reviews?

    Karnataka Govt Blames RCB for Chinnaswamy Stampede

    Congress- led Karnataka Govt Blames RCB for Chinnaswamy Stampede, Cites Kohli’s Video in HC

    Ace Alliance: Accelerating Growth in the European iGaming Market

    Ace Alliance: Accelerating Growth in the European iGaming Market

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    LeT’s Muridke Exit: Bahawalpur the New Hub

    Pakistan’s Terror Map Shifts as Lashkar-e-Taiba Flees 400 km South from Muridke to Bahawalpur After Op Sindoor

    Even Terrorists Are Treated Better": Imran Khan Alleges Targeted Abuse

    Treated Worse Than Terrorist: Imran Khan Blames Army Chief Asim Munir for Jail Torture

    Raj Thackeray Warns BJP MP: ‘We’ll Drown You in Mumbai’s Sea’ Over Marathi Row

    Dubo Dubo Ke Maarenge : Raj Thackeray Threatens to Drown BJP MP Nishikant Dubey

    Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On

    Trump’s Repeated ‘India-Pakistan War’ Boasts: Why It’s Time India Moved On

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Air India Crash: US Safety Board Urges Caution Amid Ongoing Investigation

    Air India Crash: US Safety Board Urges Caution Amid Ongoing Investigation

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    AI Appreciation Day Celebrated Globally, Spotlight on Innovation and Ethical Progress

    India Achieves 50% Non-Fossil Fuel Power Capacity

    India Achieves 50 pc Non-Fossil Fuel Power Capacity, Five Years Ahead of Schedule

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    Advantages of Using an EMI Calculator Before Applying for a Personal Loan

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Strategic Shift: Bitra Island for Defence Forces

    India Secures Strategic Edge: Centre Moves to Acquire Bitra Island in Lakshadweep for Defence Forces

    India Successfully Tests Prithvi-II and Agni-I Ballistic Missiles

    India Successfully Tests Nuclear Capable Agni-I & Prithvi-II Ballistic Missiles in Odisha, Strengthens Strategic Deterrence

    Successful Test of ‘Akash Prime Air Defence System’ in Ladakh

    Successful Test of ‘Akash Prime Air Defence System’ at 15,000 Feet in Ladakh

    CDS Chauhan: India Needs Tomorrow’s Tech to Win Today’s Wars

    India Needs Tomorrow’s Tech to Win Today’s Wars, Says CDS Anil Chauhan; Urges Indigenous Tech Push

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    TRF Declared Global Terror Outfit After India’s Swift Diplomatic Strike

    India’s 72-Hour Blitz After Pahalgam Gets TRF Blacklisted by Washington

    TRF Ban a Win for India: Renewed Momentum to Greylist Pakistan at FATF

    TRF Sanctioned: Will Pakistan’s Terror Nexus Drag It Back to FATF Grey List?

    US Declares Pakistan’s Lashkar Proxy TRF a Terror Outfit,

    Pahalgam Massacre: US Declares Pakistan’s Lashkar Proxy TRF a Terror Outfit, Cites Trump’s Justice Call

    Baloch Insurgents Kill 29 Soldiers: Pakistan Army Losing Control in Balochistan

    Is Balochistan Slipping Away from Pak? 29 Soldiers Killed as BLA, BLF Launch Simultaneous Attacks

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    NCERT Textbook Reveals Mughal Religious Intolerance

    Ruthless Babur, Violent Akbar, Destructive Aurangzeb: NCERT Textbook Reveals Mughal Religious Intolerance

    India Built Gardens Long Before Babur Dreamt of Charbagh

    Before the Mughals: India’s Civilisation Built Gardens Long Before Babur Dreamt of Charbaghs

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Revisiting the MANUSMRITI: Why India’s Youth Must Study This Ancient Epic

    Echoes of the Cholas in Today’s Bharat

    Conqueror of the Seas: Rajendra Chola and the Rise of Naval Bharat

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Review Batery Casino India

    Review Batery Casino India

    What Learners Say about Simplilearn AI Course Reviews?

    What Learners Say about Simplilearn AI Course Reviews?

    Karnataka Govt Blames RCB for Chinnaswamy Stampede

    Congress- led Karnataka Govt Blames RCB for Chinnaswamy Stampede, Cites Kohli’s Video in HC

    Ace Alliance: Accelerating Growth in the European iGaming Market

    Ace Alliance: Accelerating Growth in the European iGaming Market

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
  • Economy
  • Defense
  • Geopolitics
  • Knowledge
  • Law
  • Lounge

‘There is no free lunch,’ PM Modi is making sure that no one gets used to freebies, even if it means putting money in MGNREGA

Brilliant

Amit Agrahari by Amit Agrahari
19 May 2020
in Economy1
modi

(PC: New Indian Express)

Share on FacebookShare on X

There is a popular saying used in Economics called “There is no such thing as a free lunch” which is used to convey the idea that it is impossible to get something for nothing.

After the outbreak of Coronavirus, the economies around the world collapsed and the left-wing economists and politicians across the world started arguing that the governments should transfer money in the accounts of the poor for free to stimulate demand, forgetting the basis principle of “no free lunch”.

RelatedPosts

Income Tax Calculator: Explaing Modi govt’s major tax relief for Middle Class

As ‘One Nation, One Election’ Bill reportedly gets Cabinet nod, here is how Electoral Reset would Revolutionize Indian Democracy

As Trump Bets on DOGE, Here’s How Modi Transformed Governance in 10 Years

Load More

In India, Rahul Gandhi said, “I urge the government, do give loans to people, but not act like a ‘sahukar‘to her children. Mother India should give money directly to her children as they need money now.” 

But, there is a serious moral hazard if a government starts distributing cash to people for free, because it gives them the idea that even if they do not do anything to earn money, the government would take care of their basic necessities.

Therefore, Modi government has made sure that not a single penny of the 20 lakh crore rupees package is distributed for free. The government focused on liquidity measures to increase cash flow in the market and make sure that the companies survive. More than half of the 20 trillion dollar support was focused on liquidity and ensuring monetary transmission of RBI’s low interest rates.

The government even allocated 40,000 crore rupees extra to much maligned MGNREGA scheme to give employment to migrant laborers from rushing back to villages from cities after the lockdown.

With JAM trinity, the government had the option to directly transfer this money to account of the people, but, in this situation people would be getting monetary support without any work, creating moral hazard that every economy fears.

This is the reason that Modi government is opposed to the idea of Universal Basic Income (UBI) scheme. After a paper by former Chief Economic Advisor Arvind Subramanian and the Congress’ NYAY scheme generated debate about UBI in Indian policy circles, Bibek Debroy, Chairman of the Prime Minister’s Economic Advisory Council argued that it would much better to transfer the Direct Benefit of subsidies to accounts of the people in leakage free efficient manner rather than ensuring a minimum income to everyone as this would give an impression to people that their basic necessities are being taken care of without any work.

Therefore, it is important for the government to ensure that people do not get used to freebies as it would harm the economy in the long run. Apart from moral hazard, it would destabilize the macroeconomic stability of the country.

The last time we dealt with such economic crisis was in 2008-09 financial crises when Congress was in power. At that time, P Chidambaram was the finance minister and he announced the first-ever large scale farm loan waiver for 3 crore small and marginal farmers, which cost around 60,000 crore rupees back then.

Moreover, the government increased spending through schemes like MGNREGA and took the fiscal deficit above 6 percent, the mandated ceiling under the FRBM act. The Congress-led UPA did not stop right there, it asked the PSBs to go with a blank cheque to industrialists and give credit of whatever amount they amount.

And what was the result of all these demand-side measures? The inflation crossed double-digit in the country and there was a huge uproar about high onion and vegetable prices. Within the next few years, India was among the ‘fragile five’ economies of the world with a growth rate below 5 percent of NPA of 15-20 percent of total credit.

The macro-economy was a complete mess by 2012 and had Modi government not come to power in 2014, India’s story would have been over. Therefore, the last time we dealt with a crisis through demand-side measures, the macroeconomic measures were all unhealthy. This time, the Modi government is dealing with the crisis through supply-side measures to ensure macroeconomic stability without a moral hazard.

Tags: MGNREGAModi government
Share324TweetSend
Previous Post

‘I have 1000 buses,’ said Priyanka. Yogi said, ‘Okay, let’s run them’. Now she is crying foul

Next Post

‘Come on, we are friends,’ Isolated China tries to placate a furious Japan. But Japan is done being pacifist

Related Posts

real estate
Economy1

India Retains Top Spot Among Global Investment Hubs for Land and Development Projects

11 June 2025

India has reaffirmed its position as one of the world's most attractive destinations for cross-border investment in land and...

Centre approves Rs 10,601 Crore for Assam’s Namrup-IV Fertilizer Project
Business

Centre approves Rs 10,601 Crore for Assam’s Namrup-IV Fertilizer Project

19 March 2025

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a proposal to establish a new brownfield ammonia-urea...

RBI Wins Digital Transformation Award 2025 by Central Banking, London, UK, PM Modi Congratulates the RBI
Business

RBI Wins Digital Transformation Award 2025 by Central Banking, London, UK, PM Modi Congratulates the RBI

16 March 2025

Commendable accomplishment: PM Modi hails RBI’s digital transformation award win New Delhi, March 16 (IANS) Prime Minister Narendra Modi...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Currently Playing

India’s ULRA Bomber: 12,000-km Beast That Can Strike Anywhere Without Refueling

India’s ULRA Bomber: 12,000-km Beast That Can Strike Anywhere Without Refueling

00:07:39

The Shocking Truth About Mass Conversions in Tamil Nadu

00:07:26

The Butcher of Pahalgam: Sulaiman — Trained by ISI, Pakistan’s Commando-Turned-Terrorist

00:04:13

Congress’s Rohith Vemula Bill: Caste Polarization Masquerading as Reform

00:07:33

Bhima Koregaon Won’t Be Repeated; Maharashtra’s Special Act to Wipe Out Urban Naxals.

00:06:06
Facebook Twitter Instagram Youtube
tfipostTfipost.com
Right Wing | News Analysis | Indian Opinion
  • About us
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy
  • Sitemap
MASHABLE IS A GLOBAL, MULTI-PLATFORM MEDIA AND ENTERTAINMENT COMPANY. FOR MORE QUERIES AND NEWS, CONTACT US AT info@mashablepartners.com


©2025 TFI Media Private Limited

No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFIPOST हिन्दी
TFIPOST Global

©2025 TFI Media Private Limited