Analyse the impact that the increasing number of social grants may have on the unemployment rate
Answers
Social grants are given in a developing economy for the welfare of the small, backward and marginal groups. The concrete impacts of such social grants are-
1) Social grants in sort of food subsidy, LPG support, cash grant which benefit the poor to come out of their poverty and help them subsist basic life necessities.
2) With the basic necessity of food which is needed to be fulfilled, a person can consider to go out and work and earn wages, and hence leads to the progress of his or her family. This points to more employment and diminishes employment rates.
3) Free education grant, particularly for poor children permit them to get instructed and work to earn wages. Hence, unemployment is reduced.
Social Grants are the grants given by the government to the needy people.The motive social grant is to help economically backward people.
Explanation:
To qualify for the Social Grant one must be in the age of 18-59 years and are declared medically unfit by a medical officer because of their physical or mental disability.
Some forms of social grant in India are :-
1) Food subsidy, LPG subsidy, cash grant are some of the social grant provided to poor people by the government of India
2) The Indian Education Formula Grant program is a type of social grants provided to the local educational agencies to help them to bring reform in elementary and secondary school programs
There are negative effects of social grants :
- Can lead to an increase to unemployment as people tend to develop a habit to sit and eat ,leading to unemployment .
- Improper utilization of subsidies
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