bad economics

Numbers just don’t add up!

What's the real cost of the BJP's manifesto? Just how much will it cost the Treasury?

CNBC-TV18 journalist Vivian Fernandes reminds you in the Mint that although it may not cost you to vote for the BJP, if they do come into power, their manifesto could cost the Treasury numbers to the tune of 50,000 crores.

Providing 35kg of rice and wheat per month to very poor families at Rs2 a kg might mean an outgo of Rs10,000 crore. Farm loans at 4%, will raise the subsidy from two percentage points to five, and swell the bill to Rs6,500 crore. A complete farm loan waiver may not cost much, as the UPA government has done much of the waiving at Rs66,000 crore.

Read his incisive piece here.

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