Former Union Finance Minister, Yashwant Sinha, is disappointed with the first relief package of the central government. He remarked that the Prime Minister announced a relief package of Rs. 20 lakh crore, today when the Finance Minister came out with a relief package, but felt that as the government was trying to touch the figure of Rs. 20 lakh crores by adding new and old all everything here.
Yashwant Sinha said that the Finance Minister could not tell in response as to what to how much of this would go to the Central Government budget. He remarks not even a single rupee. Yashwant Sinha said that the entire burden is centred towards lending to the people through banks, including the Finance Corporation. He said that some time back, the Finance Minister had mentioned that banks are ready to lend Rs. 5-6 lakh crore to businessmen. The bigger question is who wants to take these debts?
Government disappoints the poor, labourers, farmers
The former Union Finance Minister said that the first picture on thinking about coronavirus or lockdown effects comes that of the poor, labourers and the farmers. Because of the businesses being closed under the lockdown, they have no means of survival. They have no means of income and not even any transportation mode to reach out home safely. The Finance Minister has not made any announcement for this purpose.
Money to be put in people’s pocket
The money should go into the pockets of people who have lost their jobs and/or not getting a salary since past three months. Money should go into the pockets of the poor, the farmers and the labourers. Only when people have money, would they buy goods. If demand increases, the products of the companies will increase, the production on demand. This well help to build and boost the supply chain. I think, there has been no such initiative in the announcement so far. The announcement did not show a commitment to maintain the supply chain. All what the government has talked about is the loans. What will people do with a loan? It has to be anyways returned.
Is a clear thing. At this time, money in the employee’s pocket will not be very fruitful. First the money has to be put in people’s pockets. The question of re-defining of MSMEs is a great idea. The announcement of a package of three lakh crore is an old recommendation of the UK Sinha Committee.