BY : SHIVA CHANDRA
The pandemic Corona commonly known as (COVID-19) spectra which
has swallowed the lives of many and many more lives are suffering due to its infections. Throughout the globe, the virus (Corona) by two ways it’s destroying the lives of people, by the way of death and by the way of diminishing the economy which indirectly leads to the loss of livelihoods of many people. In order to tackle the economy, and to place it in a right path during this tough time/situation. The Government of India has promulgated special package of Rs: 1.07 lakh crore to woo the people, along with it the Reserve Bank of India also taken some measures for the rescue of the economy.
The survey conducted by India Inc. Which was conducted between 25 Chief Executive officers, all them reiterated that measures announced by the Government of India and Reserve Bank of India are not enough to retaliate the virus. The special package and measures announced by have its pros and cons, due to its Demographic and high population, where majority of them employed in unorganised sectors of the country, such relief can be regarded as small piece of cake.
Highlights of special package are:
As per Financial minister, the Government of India has rolled Rs: 1.07 lakh crores, which amount to 1% of the Gross domestic product of the nation.
The announcement of money to be transferred through Direct Benefit Transfer is a good initiative as a part of the Government.
About 2.2 millions Health professionals fighting the COVID-19 out break, will be provided medical insurance cover of Rs: 15 lakhs per person.
Cash transfer for people under Pradhan Mantri Kisan Scheme of Rs: 2,000/- will be transfer to 86.9 million farmers.
Eligible widows, senior citizen, handicapped, a one time amount of Rs: 1,000/- will be transferred in two instalments, over the next three months.
Under MGNREGA, regular wages will be hiked from Rs: 182/- to Rs: 202/- which will benefit 50 million families.
80 million household to get free cylinders for 3 months.
Government pay 24% EPFO contribution of workers, firms for 3 months.
District Mineral Fund to be used for testing and screening.
Highlights of Reserve Bank of India incentivises:
Decision taken by the Monetary Policy Committee (MPC), to cut the repo rate of 75 basic points.
Reverse Repo rate has been cut by 90 basic points.
All commercial, Regional, Rural, NBFC’s and small finance Banks are being permitted to allow 3 month moratorium on payment of instalments.
Infusion of Rs: 1,37,000/- crores across Banking system.
DEFECTS IN THE PACKAGE AND NEEDS IN THE PACKAGE:
According to the previous governors of Reserve bank of India, the amount of Rs:1.07 lakh crores does not constitute 1% of the GDP, it only constitutes for 0.8% of the GDP. Even the 1% of GDP is not sufficient to tackle the present situation, whereas a hike of atleast 10-12% of the GDP is need of hour.
Providing medical insurance is necessary to the personnel at the same time sufficient equipment also to be provided to not being infected by the virus.
An amount of Rs: 1,000/- is not sufficient to the people, an amount of Rs: 7000/- is to credited in the account upto 3 months.
The sudden hike of payment for MGNREGA is not necessary at present because all the workers are confined to home at present, the hike of payments is useful only after the lifting of lock down.
The repo and reverse repo rates can be even minimized because in past we have rarely seen the rates have been minimized even if they chance to do so.
The moratorium of EMI for 3 months by the government have to be maximized, because the Government previously written off many debts of lakhs of crores, it is feasible to maximise rather than to written off.
Insolvency Bankruptcy code and Non Performing Assets rules has to be relaxed otherwise the NBFC goes into Bankruptcy
Need more inclusion of money by the government in the economy to increase the demand after lifting of lockdown.
The packages announced by the Government of India and Reserve Bank of India is not enough to retaliate the virus, a comprehensive economy stimulus package has made which the fruits of that policy should be available for class of the society. At this Pinnacle situation, the allocation of minuscule amount goes nowhere. The centre must come in standstill position and need to robust the economy of whole nation and need to incentivise the mostly affected states.
According to economic experts, a lumpsum of Rs: 100 billion dollars need to be allocated to tackle the situations, the government need to remember that the People in the country are more important than anything. Economy can be revived in course of time but whereas the person cannot.