http://scroll.in/article/808996/fact-check-from-claims-on-ration-cards-to-gas-connections-how-modi-inflated-the-numbers


Fact check: From claims on ration cards to gas connections, how Modi
inflated the numbers

by Mayank Jain <http://scroll.in/authors/697>

Published Yesterday · 06:37 pm.   Updated Yesterday · 08:14 pm.

As the government celebrated its second anniversary, the prime minister and
his ministers made several claims. At least five of them do not add up.[image:
Fact check: From claims on ration cards to gas connections, how Modi
inflated the numbers]

It’s been two years since the Bharatiya Janata Party swept the Lok Sabha
elections under his leadership but Prime Minister Narendra Modi has never
really come out of campaigning mode. To celebrate its second anniversary,
the BJP government organised a gala event at India Gate in New Delhi on
Saturday. Broadcast live on Doordarshan, the event saw musical performances
interspersed with discussions on key government schemes and policies, with
ministers outlining their key achievements.

The prime minister’s speech came right at the end of a six-hour-long
celebration. In an address high on rhetoric, Modi made several claims about
his government’s performance.

How accurate were the claims? *Scroll.in* did a fact-check on some of them.

Claim 1: Rs 15,000 crore was saved by plugging subsidy leakages.
Fact: These are potential, not actual, savings.
Modi claimed that his government has saved more than Rs 15,000 crores in
subsidies by identifying leakages and routing funds through direct benefit
transfers to beneficiaries' bank accounts.

"In LPG gas subsidy lists, we found so many fake names, so much leakage, we
saved you nearly Rs. 15,000 crore," he said. "For this alone, the country
will tell me, Modi ji, you are doing what is right."

As reported
<http://indianexpress.com/article/business/business-others/lpg-subsidy-transfer-centres-savings-not-more-than-rs-143-cr-while-it-claims-rs-12700-cr/>
by
the *Indian Express* in October 2015, researchers at the International
Institute of Sustainable Development have disputed the government’s claims
of large savings on account of introducing cash transfers for LPG
subsidies. The researchers found the actual savings were not to the tune of
thousands of crores of rupees but a mere Rs 143 crore over two years.

Chief Economic Adviser Arvind Subramanian, who had first made the claim of
large savings on account of direct benefit transfers in LPG in July 2015,
wrote
<http://indianexpress.com/article/opinion/columns/clearing-the-air-on-lpg-direct-benefit-transfer-subsidies/#sthash.j7Ruzu1G.jW6N4XEQ.dpuf>
a
column in the *Indian Express *in April to clarify that the savings that he
had calculated were “potential” and not actual. He pegged the potential
savings for one year at Rs 12,700 crores, a figure published in the
Economic Survey this year.

Even the estimate of these potential savings is Rs 2,300 crore less than
what the prime minister claimed the government had saved.

Claim 2: More than three crore new LPG connections were provided to poor
families.
Fact: Only 60 lakh connections were provided till April 2016.
During his speech, the prime minister said that his government has utilised
funds saved from people giving up their LPG subsidies to provide new gas
connections to the poor. He said that more than 1.13 crore people have
given up their subsidies already and this has helped the government to
provide more than three crore new gas connections to the poor in just one
year.

"We gave more than three crore families LPG connections in the last one
year," he said. "Such huge work has never happened in India. In the coming
years we will bring LPG connections to five crore people."

A government press release in January said
<http://pib.nic.in/newsite/PrintRelease.aspx?relid=134114> that it had
given more than 45 lakh gas connections to the poor through the “give-back”
scheme. In April, the petroleum minister told
<http://www.dnaindia.com/money/report-pm-modi-to-launch-rs-8000-crore-scheme-to-provide-free-lpg-connections-to-poor-2205184>
reporters
that the government had released 60 lakh new connections to poor in the
last year.

Forty five lakh connections amount to just 15% of the three crore figure
mentioned by the Prime Minister. This goes up to 20%, if you take the
number of 60 lakh connections.

Could the government have plausibly covered the 80% shortfall in less than
a month?

Claim 3: More than 1.65 crore fake ration cards were deleted by the
government.
Fact: Only 66 lakh cards have been deleted in the last three years.
Hailing his government’s work in plugging subsidy leakages, Modi said that
his government has struck off as many as 1.65 crore ration cards from the
system because they were fake. Minutes later, in the same speech, he quoted
another figure – 1.62 crore cards.

"During our work we have found more than 1.62 crore fake ration cards," he
said. "That used to go somewhere. Somebody used to steal all that ration."

According to a government press release in December, more than 1.2 crore
ration cards were deleted
<http://pib.nic.in/newsite/PrintRelease.aspx?relid=132754> in the years
2012-’14 – 76.48 lakh in 2012, 43.31 lakh in 2013, and 10 lakh in 2014.

Since May 2014, has the government managed to delete another 1.65 crore
cards?

In April, another release stated
<http://pib.nic.in/newsite/mbErel.aspx?relid=142266> that the government
had deleted 66 lakh ration cards in the last three years. This implies that
apart from the 10 lakh cards deleted till May 2014, the government has
deleted another 56 lakh cards since then – a far smaller number than the
one mentioned by the prime minister.

Moreover, not all of these ration cards were fake ones issued in the name
of non-existent people. In the case of fake or bogus cards, the ration is
sold illegally, enriching dealers. But as the government press releases
clearly state, the deleted cards include those held by people who were
found ineligible for the subsidised rations by the government, perhaps
because they had grown richer.

Claim 4: More than 20 crore bank accounts were opened during first 100 days
of Jan Dhan scheme.
Fact: Only 8.6 crore accounts were opened during this period.
The prime minister was not the only one who made tall claims on Saturday.
Finance Minister Arun Jaitley, who is an adept lawyer and is considered one
of the most articulate ministers in the Modi government, also contributed
to the exaggerations.

During an interaction with journalist Ashok Malik, Jaitley was asked about
his government’s efforts towards ensuring financial inclusion for the whole
country. He said that a key part of his work was implementing the Pradhan
Mantri Jan Dhan Yojana. Under this programme, the government has opened
more than 20 crore accounts in the first 100 days of the scheme, he claimed.

“Two years ago, 58% of the households in the country were connected to the
financial sector,” Jaitley said. "This government has added 21 crore-22
crore people to the banking net in a matter of 100 days."

The government’s own progress report released days after the scheme
completed its 100 days in December said that the banks had opened a mere 8.76
crore <http://pmjdy.gov.in/FILES/PRESS/ENGLISH/11.12.2014.PDF> bank
accounts – just 40% of the figure Jaitley claimed.

Claim 5: India is the fastest growing country in the world.
Fact: India is the fourth fastest growing economy in the world.
Asked to comment on how the Indian economy was faring compared with the
rest of the world, Jaitley said
<http://profit.ndtv.com/news/economy/article-india-growing-at-7-5-amid-global-slowdown-arun-jaitley-1413074>
:

“Many economies are shrinking. Some are growing at a mere one or two
percent. For the first time in history, India is currently the world’s
fastest growing economy. We are growing at 7.6% – it’s a fast pace as
compared to the world but still not upto our expectations.”

According to government statistics, the Indian economy grew at 7.6% in
2015-'16. This rate is expected to get closer to 8% in the current
financial year but India is far from being the fastest growing economy in
the world.

According to the data compiled by the World Economic Forum, Myanmar is the
world’s fastest
<https://www.weforum.org/agenda/2016/04/worlds-fastest-growing-economies/>
growing
economy with a projected real GDP growth rate of 8.6%. On the second place
is Ivory Coast with 8.5% and then there is Bhutan with its 8.4% growth rate.

India, hence, is the fourth-fastest growing economy in the world – if one
chooses to believe the veracity of a new methodology which economic
observers say has inflated
<http://www.livemint.com/Politics/jKTdOc5DMlJs7QuaoZdLtN/The-truth-behind-Indias-new-GDP-numbers.html>
the
country's growth rate. Among those sceptical of the accuracy of India's
growth numbers are chief economic advisor Arvind Subramaniam and Reserve
Bank of India governor Raghuram Rajan.




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