Amid Lock down Relief Packages for Lives and Livelihood of People: COVID-19
Amid Lock down, Relief Packages for Lives and Livelihood of People; COVID-19
Shashank Vikram Pratap Singh
Ph.D. Scholar
Department of Commerce
Delhi School of Economics
University of Delhi.
Undoubtedly, the enormous
impact of deadly COVID-19 on the economy and humanity is believed to be bigger
than the sum of all crises in the last century. The livelihood and way of
livings of more than fifty hundred million people across the world have
incredibly affected by it. Complete shout down in many countries across the
world is sufficient enough to believe so. Globally more than five lakhs people
have infected and around 26 thousand people have died so far in the last three
months.
Countries having the best
of the best technologies, the highest level of scientific advancements and the global best health care infrastructure too are suffering hugely. The powerful
invincibility of this virus has completely uprooted existing systems of
economic and non-economic activities in the majority of the countries across
the world. So as the case with India. On 24th of March, 2020 honourable PM of
India has announced the complete shut down in the whole India till 14th April,
except the supply of essential items.
Non-availability of any scientifically
approved medicine and the nature of exponential growth of spreading of
COVID-19, has forced the governments and concerned authorities to weaponize the
physical distancing among people via lock down the whole country to combat over
it. Unquestionably, it has a direct humongous adverse impact on the economy and
livelihood of the labor class whose number is quite huge in a country
like India. Recently the news related to the pathetic state of being of migrant
laborers is evident enough to believe so.
Whether to go with
‘physical distancing’ or to ‘protect the lives and livelihood of 80 crores poor’-
was the toughest choice. The GoI (Government of India) and RBI has smartly
overcome from this enigma by announcing the relief package of INR 1.70 lakh
crore under PM Garib Kalyan Yojana (PMGKY) and by injecting the instant
stimulus of INR 3.70 lakh core (respectively) in the economy.
Amid the enigma of
‘physical distancing’ and ‘protecting the lives and livelihood of poor people,
Finance Minister (FM) has made the following announcement on 26th of March-
For the next three
months, additional 15 kg grain and 3 kg of dal based on regional choices at
free of cost to 80 crores poor through PDS; ex gratia Rs1500 (Rs 500
for each month) to 20 crore women holding Jan Dhan Account; free LPG to 8.60
crore Ujjwala beneficiaries; additional one-time support of Rs.1000 to three
crore senior citizens, widows, and divyangas. Besides these, the wage rate of
MGNREGA workers has increased to over Rs 200 by which around five crore
families will get direct benefits.
Under PM-KISAN, the GoI
will expedite payment (due in 2020-21) of the first instalment of Rs.2000 in
April itself. For the organized sector, the GoI will pay the contribution of
both the sides for 80 lakh employees of small companies whose earning is up to
Rs.15,000 a month.
Apart from these, RBI has
made a series of announcements to boost liquidity in the economy. Repo rate has
reduced to the historical 15 years low to 4.4%; CRR cut to 3%- the first time
since January 2013, increase reverse repo rate, not by 25 basis points rather
40 basic points and three months moratorium of all kinds of retail loan
payments. Meaning hereby, availability of additional funds with back to lend at
the historically lower rate and for individual no need to pay EMI on any retail
loan for the next three months. As per the announcement, the bank will not
chase us for non-payments and no one will be reported to CIBIL or any other
credit information agency, this will lead to additional cash in the hand at the
time of emergency, salary cut and loss of job and many more.
The message from such a
combined effort is very much loud and clear. On one hand, GoI is making efforts
to put cash in one pocket and food in another pocket of 800 million poor and on
the other hand RBI is making efforts to inject the additional liquidity in the
economy which is highly commendable and needs of hours at this juncture.
Thus, the trio used to
tackle the issues
· PDS (Public distribution system) for the
distribution of food grains
· Social security pension and cash transfer
· Boosting liquidity via CRR, SLR, Repo,
and Reverse Repo rate.
Whatever so far done to
tackle the lives and livelihood of people deserves a satisfactory sense of
appreciation as of now. But at the same time, whether these relief packages and
its ways of delivery are sufficient enough to address the pathetic state of
being of especially poor and migrant laborers or not? Seeing the unavailability
of actual data and high skewness in social, financial and economic inclusion of
actual poor, it's not appropriate to comment at this point in time. It’s too
early to comment and hence we have to wait and watch.
Comments
Post a Comment