Nyay Scheme

Written By Gautham Krishna   | Published on April 23, 2019

The Congress Party’s 2019 election manifesto has promised a ‘Minimum Income Guarantee Scheme’  formally called Nyuntam Aay Yojana (NYAY), to 5 crore ‘poorest families ’ covering 25 crore people by assuring them a guaranteeing minimum income of INR 6,000 per month or INR 72,000 a year.

Nyay Nyuntam Aay Yojana


  • The rollout will be implemented in phases. There will a be Design phase (3 months) followed by a Pilot and Testing phase (6-9 months) before roll-out of the scheme.

  • The money proposed to be given to the poor under 'NYAY' scheme would be deposited in the accounts of women

  • The estimated cost will be less than 1 percent of the GDP in the first year, and less than 2 percent of the GDP in the second year and thereafter.

  • As the nominal GDP grows and the families move out of poverty, the cost will decline as a proportion of the GDP.

  • If in power, the Congress will appoint an independent panel of economists, social scientists and statisticians to oversee the design, testing, rollout and implementation of the programme. The programme will move from one stage to the other only after a go-ahead from the panel. 

  • The Nyay scheme would be a joint scheme of the central and state governments

  • The scheme will be funded through new revenues and rationalisation of expenditure. Current merit subsidy schemes that are intended to achieve specific objectives will be continued.


The NYAY scheme has a proposed expenditure of Rs 3.6 lakh crore over and above the existing Rs 3.34 lakh crore expenditure outlined by the Modi government in the 2019 budget. Since the Congress announced that the NYAY scheme will not subsume any existing government poverty alleviation schemes, it would mean the government of India need to spend Rs 6.94 lakh crore on subsidies if the Congress comes to power.

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