Economic measures taken by Government First, it is the Covid-19 pandemic followed by nationwide lockdown
Economic measures taken by Government First, it is the Covid-19 pandemic followed by nationwide lockdown
Our country had been witnessing a dip in its economy even before the pandemic hit. While forecasts were being made about how a raise would be possible in the near future; the contagion came on in full force. Among the many devastating effects that Covid-19 has had, the collapsing of the economy seems to be on the top of the list. Social distancing was observed through the lockdown and as a result the job market received a jolt. Naturally, without any work being done, there could not be any inflow of revenue. This in turn led to a further fall in the nation’s economy.
The government’s awareness of the depreciating situation of the finances immediately made it plunge into taking certain measures to help recover the loss. But the challenge came when it had no choice but to simultaneously look into the needs of the citizens of various strata of the society. Surely everyone is deeply affected by this unforeseen pandemic, but the need of the hour is to protect and uplift the lower strata first. This is important as they are the ones who have less or no access to basic necessities for existence. Medical aid, proper residence, awareness, cleanliness; all of these are things that people belonging to this section of the society are barely provided.
As per sources, there is already a drop in the market by a whopping 35% and an additional 10-15% dip is expected by early next year. But unfortunately, the government has to maintain a balance between making the economy better and at the same time giving financial support to the lower level of the ecosystem. Therefore, the relief fund is the foremost thing that the government used as its tool. On the 26 th of March, the Finance Minister of the country announced that around 1.7 trillion rupees will be dedicated towards a relief fund for the ongoing pandemic. It aimed at taking care of approximately 80 crore individuals across the country. This care was not just in the form of food, but medication and other basic requirements, with special regard to women and children.
According to the Pradhan Mantri Gareeb Kalyan Yojna, the government is giving out 5 kgs of wheat or rice through the ration offices, free of cost for three months. In some states, 5kgs of lentils have also been distributed through the same medium for each family. This at least takes care of the food requirements of the downtrodden people of the society. The medical facilities being provided with respect to the corona virus treatment is not being charged anywhere, thereby making it easier for people to take medical assistance whenever required. In this way, the government has and is continuing to move in the right direction in responding to the pandemic.
With the shutdown of the majority of businesses, the corporate sector has been badly affected; a lack of workforce has directly hit the production rates. The small and medium business owners had no other option but lay off some of their workers. It is, therefore, not hard to understand the increasing number of unemployment cases. However, by providing unemployment benefits to the unemployed, the discontent of several individuals can be controlled considerably.
Another way in which the government has helped the common man is the moratorium. Loans are a regular word in the present times, starting from the farmers to the auto drivers and even salaried people, purchasing things are mostly done by availing loans of all sorts. The direct consequence of this is the monthly instalments that every borrower must pay. With the introduction of the moratorium, though it does not waive off the instalment, people have been able to take a sigh of relief. Surely they have to pay it back, but at a later date and that perhaps, aids greatly when a lot of people have actually lost their jobs.
The centre has even made provisions for loans to those in dire need of money for starting some new business or meet up with the expenses incurred by the pandemic. These loans are very easily processed and are supposed to be returned within a fixed period without any interest being charged.
Additionally, the relaxation in the date for the payment of tax has also helped largely; no penalty shall be imposed on anyone with regard to the delay. Further, all pending tax-refund cases were ordered to be dispatched with immediate effect. Tax rates have been fairly reduced, which makes more funds available to the common man. In fact, changes have been made concerning foreign trade policy as well. The validity of this policy was 2015-2020, but considering the current situation it has been extended to 2021.
The Central government seems to be doing a lot to maintain a grip over the economic crisis of the country; however, not all of it can be seen because of one fundamental crippling factor of our country - corruption. Some state leaders, who are being endowed with a large portion of the responsibility for the welfare of the citizens, are more interested in filling their own pockets and carrying out dirty politics. The political parties seem highly insensitive and indulge in mud-slinging at each other instead of tending to the needs of the common man. The Central government should impose stricter rules on the working of these local leaders and make them accountable for each action taken towards the welfare of the people at various strata of the society.
If this is taken into strong hands, the positive efforts of the central government will find its fruition in these difficult times. This in turn will benefit the people of all levels of the society and get the nation back on its feet very soon.
© Arked
Our country had been witnessing a dip in its economy even before the pandemic hit. While forecasts were being made about how a raise would be possible in the near future; the contagion came on in full force. Among the many devastating effects that Covid-19 has had, the collapsing of the economy seems to be on the top of the list. Social distancing was observed through the lockdown and as a result the job market received a jolt. Naturally, without any work being done, there could not be any inflow of revenue. This in turn led to a further fall in the nation’s economy.
The government’s awareness of the depreciating situation of the finances immediately made it plunge into taking certain measures to help recover the loss. But the challenge came when it had no choice but to simultaneously look into the needs of the citizens of various strata of the society. Surely everyone is deeply affected by this unforeseen pandemic, but the need of the hour is to protect and uplift the lower strata first. This is important as they are the ones who have less or no access to basic necessities for existence. Medical aid, proper residence, awareness, cleanliness; all of these are things that people belonging to this section of the society are barely provided.
As per sources, there is already a drop in the market by a whopping 35% and an additional 10-15% dip is expected by early next year. But unfortunately, the government has to maintain a balance between making the economy better and at the same time giving financial support to the lower level of the ecosystem. Therefore, the relief fund is the foremost thing that the government used as its tool. On the 26 th of March, the Finance Minister of the country announced that around 1.7 trillion rupees will be dedicated towards a relief fund for the ongoing pandemic. It aimed at taking care of approximately 80 crore individuals across the country. This care was not just in the form of food, but medication and other basic requirements, with special regard to women and children.
According to the Pradhan Mantri Gareeb Kalyan Yojna, the government is giving out 5 kgs of wheat or rice through the ration offices, free of cost for three months. In some states, 5kgs of lentils have also been distributed through the same medium for each family. This at least takes care of the food requirements of the downtrodden people of the society. The medical facilities being provided with respect to the corona virus treatment is not being charged anywhere, thereby making it easier for people to take medical assistance whenever required. In this way, the government has and is continuing to move in the right direction in responding to the pandemic.
With the shutdown of the majority of businesses, the corporate sector has been badly affected; a lack of workforce has directly hit the production rates. The small and medium business owners had no other option but lay off some of their workers. It is, therefore, not hard to understand the increasing number of unemployment cases. However, by providing unemployment benefits to the unemployed, the discontent of several individuals can be controlled considerably.
Another way in which the government has helped the common man is the moratorium. Loans are a regular word in the present times, starting from the farmers to the auto drivers and even salaried people, purchasing things are mostly done by availing loans of all sorts. The direct consequence of this is the monthly instalments that every borrower must pay. With the introduction of the moratorium, though it does not waive off the instalment, people have been able to take a sigh of relief. Surely they have to pay it back, but at a later date and that perhaps, aids greatly when a lot of people have actually lost their jobs.
The centre has even made provisions for loans to those in dire need of money for starting some new business or meet up with the expenses incurred by the pandemic. These loans are very easily processed and are supposed to be returned within a fixed period without any interest being charged.
Additionally, the relaxation in the date for the payment of tax has also helped largely; no penalty shall be imposed on anyone with regard to the delay. Further, all pending tax-refund cases were ordered to be dispatched with immediate effect. Tax rates have been fairly reduced, which makes more funds available to the common man. In fact, changes have been made concerning foreign trade policy as well. The validity of this policy was 2015-2020, but considering the current situation it has been extended to 2021.
The Central government seems to be doing a lot to maintain a grip over the economic crisis of the country; however, not all of it can be seen because of one fundamental crippling factor of our country - corruption. Some state leaders, who are being endowed with a large portion of the responsibility for the welfare of the citizens, are more interested in filling their own pockets and carrying out dirty politics. The political parties seem highly insensitive and indulge in mud-slinging at each other instead of tending to the needs of the common man. The Central government should impose stricter rules on the working of these local leaders and make them accountable for each action taken towards the welfare of the people at various strata of the society.
If this is taken into strong hands, the positive efforts of the central government will find its fruition in these difficult times. This in turn will benefit the people of all levels of the society and get the nation back on its feet very soon.
© Arked