Cong' $5-bn basic income plan sounds like tonic, but lacks funding details

Income support is a hot topic as India prepares for elections starting April

A $52 billion basic income plan promised by India’s main opposition Congress party if it’s voted to power sounds like tonic to the economy, but is short on details on what it means for the nation’s fiscal consolidation path.

The plan, which promises income support of as much as Rs 72,000 ($1,046) a year to 50 million families and announced Monday, left economists looking for answers on how this would be rolled out without breaching the budget deficit goal of 3.4 per cent of gross domestic product for the fiscal year starting April. Existing subsidy handouts are already putting pressure