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4
January 2017
Prime Minister Narendra Modi's
announcements on the New Year's Eve, including sops in housing, agriculture and
for pregnant women, will cost the economy a total of over Rs 3,500 crore
annually, a State Bank of India report said on Tuesday. The Total Investment & Insurance Solutions
"The overall fiscal impact of all
these measures will be around Rs 3,500 crore per year," State Bank of
India's (SBI) Ecowrap report read. The
Total Investment & Insurance Solutions
Modi announced two housing schemes in
urban areas for persons of economically weaker section (EWS) or low income
group (LIG) with income up to Rs 6 lakh, which will cost Rs 1,000 crore per
year, the report said. The Total Investment
& Insurance Solutions
The scheme for financial assistance to
pregnant women, wherein Rs 6,000 will be transferred directly to the bank
accounts of these women, will cost Rs 1,200 crore to the government.
The relief measure for farmers, which
will exempt the loans for Rabi crop from interest for a period of 60 days, will
put a burden of Rs 1,300 crore on the government.
Modi also announced a scheme for senior
citizens, under which they will receive a fixed interest rate of 8 per cent for
a period of 10 years on deposits up to Rs 7.5 lakh, and the interest amount can
be paid monthly. The Total Investment
& Insurance Solutions
The report said that the senior
citizens' scheme should be tweaked further to improve financial security.
"Though the scheme is laudable, it
may be tweaked further. The lock-in period of 10 years is quite a long span of
time in the case of senior citizens, given the life expectancy of around 68
years in India."
"We suggest that the lock-in period
should be at most five years rather than 10 years," the report stated.
"The rate of interest should be a
minimum of 8 per cent or whatsoever prevailing in the market with a defined
upper bound," it suggested. The
Total Investment & Insurance Solutions
The report further said that a maximum
deposit limit should be Rs 15 lakh, instead of the proposed Rs 7.5 lakh. The Total Investment & Insurance
Solutions
"On the basis of Rs 7.5 lakh
deposits, the monthly interest payout will be around Rs 6,000, which may be a
negligible amount to manage the day-to-day activities," it added.The Total Investment & Insurance
Solutions
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