SWAN Report 2020, a surveys of migrant workers after 1 month of lockdown found that most of them (96%) had not received food rations or cash relief from the government, while around 90% had not been paid for the period by their employers either. According to the research wing of the State Bank of India, Of the Rs 2 lakh crore of direct fiscal impact, only Rs 76,500 crore (including free ration) involved direct money transfer to the people, which constitutes a paltry 0.38% of the GDP.40 Additional ration for three months, cash transfer of Rs.500 in Jan Dhan account or ex-gratia amount of Rs.1000 to widows and disabled seem to be inadequate which were all announced only till June, whereas the effect of pandemic has been long term and is still continuing. For the 14 crore migrant workers who were rendered homeless, without incomes, and without food at one stroke, and hence poured out in vast numbers onto the streets to go back to the only refuge they knew, namely their village homes, the announcement of the “rescue package” of Rs.1.7 lakh crore stands grossly inadequate. Of this, the fresh assistance in the Union Budget, amounted only to Rs.92,000 crore or less than 0.5% of the country’s GDP, which is far lower than of every other major country in the world.41
Inadequate stimulus package for MSME and Farmers Over the 40-day lockdown period, MSMEs and industries otherwise permitted to operate had been constrained due to regulatory hurdles. Each continuous process, essential service manufacturer and other ancillaries and intermediaries were unable to break the regulatory lock jam with respect to receiving approvals from district administrations. There were a lot of instances where approvals for starting operations for a continuous process or their raw material supplier or their intermediary has been pending for over 20-30 days. All the regulatory hurdles and on-ground implementation issues were most adversely affecting the MSME sector in India.42 A major portion of the Atma Nirbhar Bharat Abhiyan (ABY) package totalling a financial support of Rs.20.97 lakh crores announced by the Government of India focuses on providing collateral few loans, credit guarantees etc. to farmers and MSME. This include, -
Upfront income support of Rs.2000 to the farmers through PM-KISAN scheme Announcing Rs.3 Lakh crore collateral free loan with 100% credit guarantee
40
“Package of numbers, not relief”; T M Thomas Isaac, MAY 19 202 (web: https://www.deccanherald.com/opinion/main-article/package-of-numbers-not-relief-839620.html) 41 Patnaik, Prabhat (2020): "The Mendacity of Modi Govt's 'Rescue Package'", Newsclick, 23 May. Web: https://www.newsclick.in/Modi-GOVT-Rescue-Package-for-COVID-Sufficient 42 Singh Rudresh; May 05, 2020; “MSMEs in essential operations are locked out; implementation paralysis hurting small businesses”, Web: https://www.financialexpress.com/industry/sme/cafe-sme/msme-eodb-lack-of-coordination-betweengovt-and-on-ground-authorities-impacting-msmes/1948854/)
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