Why NYAY is unlikely to deliver results

There is a need for an urban employment guarantee scheme. Madhya Pradesh recently launched one, modelled on Tripura and Kerala. It is required at the national level

The Congress Party’s poll promise of Nyuntam Aay Yojana (NYAY) has earnestly attempted to shift the pre-election slugfest to real-world priorities. An injection of one to two per cent of GDP is undoubtedly welcome, in a country renowned for social underspending. But while details are sketchy, unless the straitjacket design of “Rs 6000 per month to 20 per cent of the poorest households” is judiciously fine-tuned, NYAY is unlikely to reap its full potential of anti-poverty or political dividends.

For one, NYAY targets a mere fifth of Indian households. For perspective, the National Rural Employment Guarantee Act (NREGA) provides employment to