Relief Package Announced by FM Inadequate: CPI
The National Secretariat of the Communist Party of India issued the following statement on March 27, 2020 on the Relief Package announced by the Finance Minister on March 26 to meet the Corona challenge:
The National Secretariat of Communist Party of India takes note of the various measures announced on March 26, 2020 by the Finance Minister Nirmala Sitaraman as a Relief Package aimed at meeting the economic challenges that has been thrown upon consequent to the threat of spread of Corona virus. The relief announced by the Finance Minister amounting to Rs1.7 lakh crore is only 0.80 per cent of our GDP. It is far less a relief compared to the requirement and what other countries are doing.
In India, the government had earlier announced Rs 15,000 crore (about 0.1 per cent of GDP) for health infrastructure. Some stimulus measures have been announced at the State level, the largest a Rs 20,000-crore package in Kerala (2.5 per cent of the state GDP), which includes some direct transfers to poor households. At the national level, several measures to ease the tax compliance burden across a range of sectors were announced earlier.
Including the Rs 1.7-lakh-crore relief package announced on March 26, measures taken by the government clearly fall short of those taken by other countries — both in terms of the quantum and extent of benefit, particularly to daily-wage earners, migrant workers and small businesses.
Considering the magnitude of the likely impact of lockdown measures, the relief announced now is grossly inadequate and we demand of the Government to consider and announce further relief, particularly to safeguard the poorer sections of the people. Similarly, the RBI governor’s announcement on March 27 (today) is vague and the impact it will make is not clear.