Updated: Apr 25, 2020
Once again the situations have baffled us to our basic needs, the era of survival has returned.Amidst a perpetuating quest of luxury we are now finding ourselves to just have our ration in abundance. The people who did not have time for their family are move available to them. Youngsters can now sleep and complex their web series without any restriction . Out of all these luxuries there is a cost which the nation will have to pay,through lock down, the government is trying to control the unprecedented health crisis , but COVID-19 is not just a more health crisis ,it is garnering an economic crisis in addition. Apart from the formal sector ,migrant workers street vendors ,contract workers ,almost everyone is hit by tsunami ,Many stranded between their home and cities. With trains being cancelled ,public transport totally repealed, their hope for easy return seems averse . Though, it is not the correct time to comment its impact on national economy as the crisis does not seems to end ,it is unprecedented crisis with no upper bound time complexity. So I would be talking about how government could reduce economy with common household with no income.
What government can do to redux itself and people:
First of all ,government should ensure supply chain of rations and other necessary items. Then it should utilize existing schemes by actives participation of state government. According to national food security portal ,there are 23.53 crore ration cards in the country ,transferring Rs 10000 in each account will cost 23500 crore. Through it is ostensibly high, but last month Hong Kong announced 10 thousand HK dollars to every permanent resident. Similar trends were seen in US and Uk. In addition to that the government can offer loan guarantee to the affected businesses , Britain has announced Euro 33 million government backed loan guarantee , with France and Spain dancing on the same tune. An EMI holiday can be huge blessing for the individuals and businesses who are suffering from the clampdown of the health crises. In case the shutdown prolongs beyond the expected time span , the government will have to look for temporary tax relief, even permitting temporary delay in payment of statuary dues such as PF and ESI.
In contention of government:
The virus has galloped the month old budget which now seems to be unrealistic. Furthermore, privatization of government assets ,for instance Air India and other PSUs’ will be in cold store. Now, extra budgetary support will be the need of the hour, and here the idea of bond issue comes into the picture. Government deployed same scheme aftermath of the sanctions imposed on the country due to Pokhran nuclear tests in 1998. Meanwhile keep your fingers crossed and follow the lockdown as I mentioned earlier its not about acing and competing for luxury ,its about the essence of existence of human race.