From wealth redistribution to inheritance tax, how Congress & BJP sparred on economy during Lok Sabha polls?

The Bharatiya Janata Party (BJP) and Congress campaigned on vastly different electoral platforms during the Lok Sabha elections.

While the Congress pitched its socioeconomic programme combining caste census and wealth distribution as a solution to India’s inequality, the BJP sharply criticised the approach. Prime Minister Narendra Modi instead said that the upward social mobility is a gradual process and the argument that the rich are only getting richer and the poor are only getting poorer is flawed.

During the campaign, the Congress also scored a self-goal when Sam Pitroda, who later quit as the Chairman of the Indian Overseas Congress, mentioned inheritance tax. Even though the Congress party said it was not part of its agenda and even Pitroda did not mention it clearly as such, the damage was done and Modi and the BJP at large used it to further drive the criticism of the Congress party’s electoral agenda.

Rahul Gandhi’s 3-pronged solution for India’s economy

During his election campaign, Rahul pitched a three-pronged socioeconomic plan for solving India’s inequality.

The plan comprised a caste-census, an institutional and financial survey, and wealth redistribution. Even as he mentioned these elements, he barely elaborated on the outline of the specific elements.

With the caste-census, Rahul sought to address the lack of representation of the backward castes and other marginalised groups in the spheres of employment and public representation. The caste-census would also serve as a basis for another signature move of Rahul: the removal of 50 per cent cap on reservation imposed by the Supreme Court.

With the institutional and financial survey, Rahul would assess how much wealth of India is with whom in India. This would serve as the basis for the proposed wealth redistribution, which was the most contentious issue that was slammed by Modi himself.

For several months, Rahul has been reiterating his “jitni abaadi, utna haq (your rights as per as your population)” slogan. The caste-census and wealth redistribution are seen as part of this agenda where a Congress government would ensure that your representation in jobs and politics and your personal or family wealth should be in line with your share in the population and you should not have excess or below your desired proportion.

“First, we will conduct a caste census…to know the exact population and status of backward castes, SCs, STs, minorities and other castes. After that, the financial and institutional survey will begin. Subsequently, we will take up the historic assignment to distribute the wealth of India, jobs and other welfare schemes to these sections based on their population,” said Rahul on April 6, as per The Times of India.

Modi & BJP thrash Rahul’s economic survey

Modi and top BJP leaders soon picked up the issue and thrashed it. At a rally in Rajasthan’s Banswara, Modi termed the Congress agenda as “serious and worrisome”. He linked it to a statement of Manmohan Singh, the former PM from the Congress party, from 2006 that minorities, particularly Muslims, should have a first right on India’s resources.

“Previously, when they were in government, they said the first right on the country’s resources is of Muslims. What does this mean? Whom will they distribute the wealth after seizing it: to those who have more children, to infiltrators! They will give away your hard-earned money to infiltrators. Is this acceptable to you? This is what the Congress manifesto says. They will check the gold that our mothers and sisters have and then distribute it to those whom Manmohan Singh’s government said have the first right on the country’s resources,” said Modi in Hindi.

As for the proposed wealth redistribution, Modi said, “They have said that, if the Congress forms the government, there will be a survey of every person’s property. It will be investigated how much gold is with our sisters, how much silver is with our tribal brothers, and where government employees work and how much money they have.”

Addressing the rally, Modi further said, “They have said the gold of our sisters will be uniformly redistributed? Is this acceptable? Does the government have the right to seek your property? Does the government have the right to seize your hard-earned money? In the lives of our sisters, gold is not just for show-off. It is attached to their self-respect. Their ‘mangalsutra’ is not about the value of gold but it’s about their dreams for life. You are talking about snatching that away in your manifesto: you will take gold and redistribute among everyone.”

Separately, in an interview with CNN-News 18, senior BJP leader and Defence Minister Rajnath Singh said the proposed wealth redistribution would bring great economic devastation and slowdown in the country.

Referring to the effect of Congress party’s proposed policies, Singh asked that if people do not have an incentive to work hard to achieve something, then why they would work or invest all.

“Unless people don’t have the incentive to work or invest to achieve something they want, why would they work at all? This thinking [wealth redistribution] will bring great devastation and economic crisis,” said Singh in Hindi.

Modi on question of India’s economic growth

While Congress has frequently alleged that the Modi government has favoured the rich and has often flagged inequality, Modi said during the elections that the discourse around it was flawed.

In an interview with India Today, Modi was asked about a report by economist Thomas Piketty in which it was said that inequality in India was rising and that those at the top were getting richer and the poor at the bottom were getting poorer.

Modi rejected the argument and said that the journey out of poverty is a gradual process and it takes time for a population to climb out of poverty.

Notably, Piketty has been linked to the Congress party as he is known to have shaped some of Rahul’s signature economy proposals, such as the minimum income’s promise in the 2019 elections.

“So, everyone should be poor. That is one solution. There will be no difference then. This is how it was earlier. Now you say everyone should be rich. So, will it happen slowly or will everyone become rich overnight? Some will become rich and pull up others. There is a process. Today, 10 people move forward, tomorrow 100 will, and the day after that 500 more will move ahead,” said Modi in the interview in response to the question.