The government has announced more than 90 per cent of the relief package for debt, interest rebate, etc., which are being reaped by the big business. If more people were given money in their hands, they would have spent it and this would have increased consumption, which would have helped a lot in reviving the economy.
Finance Minister Nirmala Sitharaman has completed the task of detailing the financial package of Rs 20 lakh crore announced by Prime Minister Narendra Modi. Sitharaman made a total of Rs 11.02 lakh crore announcements in his last five press conferences. Earlier, the Finance Minister had announced Rs 1.92 lakh crore under the Prime Minister’s Poor Welfare Package and Rs 8.01 lakh crore by the Reserve Bank of India.
In the name of recovering from the Corona crisis in this way, the central government has announced a total of 20.97 lakh crore rupees, which is about 10 percent of GDP. Prime Minister Narendra Modi has named it ‘Self-reliant India Package’. At first sight it may seem that the government has announced a huge amount to help the public. However the reality is that very little of this amount is to be given to the people in the form of direct financial help or ration or direct benefit transfer, the rest of the money will be given in the form of bank guarantee i.e. loan or loan.
Assessing the five parts of the economic relief package shows that less than 10 percent of the total Rs 20 lakh crore, that is, less than two lakh crore rupees is to be spent in giving money or ration in the hands of the people. This amount is less than one per cent of GDP. The remaining 90 per cent i.e. around Rs 19 lakh crore bank loan, working capital, interest rate cut by RBI, already ongoing schemes and schemes announced in this year’s budget. To be given as allocation.
As a solution to this unexpected crisis arising out of the Corona epidemic, many economists and even industrialists were saying that there is a need to give money in the hands of the people at such a time, so that when they spend that money. So the consumption will increase and the economy will be helped to come back again. However, the announcements of the Finance Minister would have disappointed all of them because the people in the hands B digits to very low. Apart from this, whatever announcement has been made to give loans at a cheap rate, big industries are also getting the benefit of it. The time when small industries will start getting loans and when they will be able to start their work is not clear yet.
Also, the liquidity that RBE had announced at the start of giving some exemption from interest on taking loans is also the most. Big industries such as Ambani, Tata, Birla have benefited more. Only Reliance Industries Limited (RIL) has raised a loan of Rs 12,000 crore from the market at the rate of seven and a half per cent. There are around 50 crore laborers in the country and about 12 crore people are unemployed and another 20 crore such people. Those who have left their jobs and gone home and do not know when they will be able to start their work again.
In this way about 32 crore people are sitting at home and they do not know that the next ti Four months how their life will be running. In such a situation, these people needed immediate relief and money in hand. Consumption would increase if they had money in their hands, which would have helped a lot in reviving the economy. However, the government did not do this.
States have been given the freedom to increase their lending limit from three percent to five percent of state GDP. This was a long-standing demand of the states. Now states will be allowed to borrow additional 4.8 lakh crore rupees. This will help the states to meet their high spending requirements. In the Relief, only 10 percent and 90 percent of the reform is spent. The economic package details make it clear that the government is reforming instead of relief. Less than one percent of GDP is for the relief of the people and the rest of the money will be spent in reform.
This is being done so that the government can please foreign rating agencies and foreign investors and in turn they do not bring down the economic ratings of India. We are opposing it within. The reforms introduced in this Economic Relief Package of the Central Government, benefit the big companies like Oga, not small businesses. Reforms such as privatization of coal mines, contract farming, amendment in the Essential Commodities Act are only going to benefit big industries.
It is quite surprising that in the name of helping the people in the midst of this epidemic and catastrophic crisis, the government will distribute the loan, whether it is small-scale industry, agriculture sector, Mudra Yojana and even the government is asking the street vendors to take loan from us and start work.
Here it is a common thinking that how a person who is already in such a bad condition will be able to take a loan. The government is giving loans to people in the name of welfare. But the reality is that 80 percent of small industries always work with their own resources, they do not take loans. Small businessmen do not believe in banks, people of Indian society always avoid taking loans. However, it is still a matter of how many people will take loans. Small industries had demanded that if the government gives salary to the employees who are sitting at home, then it will be a big relief.
However, the government has not done so. The government argues that they are not able to give cash because they do not have the resources. While other developing countries such as South Korea, Brazil, Indonesia all perform much better than India. They have a revenue incentive of around four per cent, with only one per cent credit guarantee and the remaining three per cent direct incentives. . In India, this is completely the opposite; Leftists, economists and industrialists are saying that people should be given money in their hands.
Industrialists like Azim Premji Rajiv Bajaj have also said that it is better to give money in the hands of the people. Such people are saying that unless the money goes into the hands of 32 crore laborers, they will not buy things when they buy. If we do not, then how will consumption in the economy come and when there is no consumption, the products of industries will not sell. This matter is not only a question of the poor but also of the future of big businesses.