Economists at the State Bank of India’s research division have come up with a proposal to incentivise taxpayers for adopting a Below Poverty Line (BPL) family which has been affected due to the Covid-19 pandemic.
The proposal has been mentioned in SBI’s latest Ecowrap report and is aimed at providing financial support to BPL families who have been hit badly by the pandemic.
The proposed scheme is voluntary and taxpayers with an annual income of Rs 10 lakh or more may be incentivised to adopt a BPL family for a year with a specified amount of Rs 5,000 per month.
According to SBI’s research, there are around 70 lakh taxpayers in India whose gross annual income is more than Rs 10 lakh. “Even if 10 per cent enrol under the scheme, it will benefit around 7 lakh families,” the research note said.
“To boost the scheme, the government can ideally incentivise Rs 50,000 tax deduction over and above 80C limits to the taxpayers and nudge them to adopt a poor family.”
It noted that the cost to the government, if the scheme is approved, will be Rs 1,050 crore, much lower than the Rs 3,500 that the government would have incurred if it had directly given Rs 50,000 to support 7 lakh BPL families.
The SBI economists have also said that the ‘adopt-a-family’ proposal could ultimately result in a consumption boom of Rs 11,666 crore — something which India needs desperately at the moment for economic revival.
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