Utilize reserves to help people financially

China may lose its position being the largest exporter country in the world due to the Covid 19 outbreak. The country is facing criticism over the spread of Coronavirus. The other countries like USA, Italy, Spain and Germany are facing huge collateral human damage by Coronavirus pandemic and struggling to control it. In view of this critical situation of developed countries experts believe that India may emerge as a central point of business post Covid 19. Redefining the definition and classification of MSMEs in the stimulus package, recently announced by GOI, from Rs. 20 croes to Rs.50 croes is a step to focus the GDP and employment generation programme. The cap of global tendering increased upto Rs. 200 crores is one more step to avoid unfair competition of local companies with foreign entities and GDP of country. The role of bank’s & NBFC’s further enhanced by the announcement of collateral free loan to the tune of Rs.3 lakh crore for MSMEs. This scheme may increase the vulnerability of NPA accounts further but at the same time stressed MSMEs will get Rs.20,000/- crore of subordinate debt to be infused as promoter equity. These measures for MSMEs include collateral free loan, additional debt, equity infusion and new policy to shield MSMEs from unfair competition from foreign companies as detailed herein above are important to nourish the manufacturing units. The start ups, make in India and many industrial units may have good impact by the initiatives being a company needs to protect their employees by job protection as well. The Government is working towards the implementation of social welfare schemes at grassroots level by involving local administrative units. Whether to credit the amount directly to the beneficiary through Jan Dhan Youjana accounts or other social welfare benefits being provided to the BPL householders during the pandemic is a routine job. We have seen the people in long queue at bank branches to activate their inactive & inoperative accounts deviating from physical distancing norms.

In order to control the inflation and ensure food security the relief package to the poorest of the poor by earmarking an amount of Rs.1.7 lakh crores seems inadequate on ground. In an analysis by introducing deferment in EMIs it would be in the interests of customer not to opt for it in good number of cases as the customer has to pay the interest amount during this period. A large portion of population lost their jobs during covid 19. The middle class hard working young lot of our society like salesmen, daily wagers, workers, runner boys, freelancers and others working in private companies or firms are facing tremendous hardships due to job loss. It is right time to frame a concrete policy and fix monthly remuneration for these neglected people in order to have a positive impact of policies on ground. This can be done by using reserves to help the people financially besides utilizing PM’s care fund, World Bank aid and tax collection earmarking for the purpose. It is right time for the government to spent a portion of amount on the welfare of people. Roughly Rs.7 to 8 lakh crores are presently in reserve account, Rs.9000 crores in PM’s care fund, Rs.100 crore aid by World Bank and Rs.36000 crores as tax collection.  As far as the business position of J&K is concerned the government needs to take steps for sound & durable solution of the problem. As already assessed by the economic alliance forums that an amount of Rs.17000 crores loss post Aug 2019 and Rs.250 crores per day during lockdown by Covid 19 is to be considered.

   

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