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Miniscule relief package for the hardest hit sections of population
consequences. Furthermore, State governments were made responsible for essential public health measures and dealing with economic effects of the lockdown, but they were completely strapped for cash. The central government provided almost nothing by way of additional resources and imposed many conditions on their ability to borrow, thereby limiting their ability to spend and effectiveness in dealing with the disease and the economic distress. (Jayati Ghosh, 2020, Journal of Industrial and Business Economics).
The government’s lax approach to international air passengers, at a time when they were practically the only source of infections of COVID-19 in the country, was in marked contrast to its response to the domestic populace. Especially so, with the working poor, who were left stranded by the millions, when the Centre suspended all domestic public transport without notice on March 24 ahead of the 3-week national lockdown. Many were stranded literally thousands of miles from home, and the shutdown triggered a mass exodus by foot, taking a huge toll in lives and livelihoods.
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Studies39 say that misplaced timing and delayed responses in several critical areas, especially for migrants pushing them towards destitution and hunger. There has been announcement from central and different state governments under existing pro-poor government schemes about cash transfers and free ration distributions for migrants and vulnerable families. These included,
- Ex-gratia amount of INR 500 per month for women in Jan dhan account for 3 months - Free LPG cylinders for BPL families for 3 months - Wage increase by Rs.2000 per worker under MNREGA - One time ex-gratia amount of INR 1,000 to senior citizens, widows, disabled - Distribution of 5 kg of wheat and rice for free in addition to the current 5 kg allocation for the next 3 months - Direction to state governments to use welfare fund for building and construction workers. - Rs 1.7 lakh crore economic relief package under the ‘Garib Kalyan Yojana’ for the poor suffering from unprecedented measure.
However, the stimulus and relief package for poor and marginalised families, the hardest hit by the pandemic, despite inflated announcement by the Government on official relief packages, had been grossly inadequate. Total additional public spending promised by all the relief measures announced by the end of May amounted to only around 1% of GDP (CBGA, 2020).
39 A critique of the Indian government’s response to the COVID-19 pandemic; Jayati Ghosh, 2020, Journal of Industrial and Business Economics