Jubilee Post News & Views
Dr Yogesh Bandhu
The most significant thing in the economic package – part two is that since the day one the policy of ‘vocal for local’ is missing. The part two of the package under the policy does not brings hope for institutional provision for the agriculture and small traders. Finance minister announced the second instalment of the economic package.
The migrant workers, farmers, street-vendors and small traders were under focus. While announcing the economic package the finance minister said in March and April about 63 lakh loans were sanctioned and were worth Rs 86600 crore. NABARD in march 2020 made provision of Rs 29500 crore for the cooperative and rural bank.
In March Rs 4200 crore were made available to states for development in rural areas. It is obvious that these sanctioned were done before the economic package were announced but still technically we can assume them part of the economic package. If the NABARD sanctions for the previous years are seen this increase does not mean.
Farmers in large number have been getting help under the PM Kisan Yojna and other such schemes for agriculture sector and in the package the concessional credit has been increased to give Rs two lakh crore loan. About 2.5 crore farmers and fishermen can get the benefit via the kisan credit cards.
Ironically the government believes loans are the solution to farmers’ plight instead of institutional ideas. The farmers’ production association, e-NAM, commercial agriculture management and other institutional solutions can give a better economic solution for the farmers in India.
Under the package it has been provided to the state that they can utilize the money for epidemic for the food and lodging of the migrant workers. For this states have been provided under the epidemic relief fund a sum of Rs 11000 crore. This can help in buying time for the big problem.
But in absence of better management and policy decisions the plight of the workers can be seen on the roads any day and the amount of ration Rs 3500 crore for 8 crore migrant labours is just enough for next two months only. But this does not pays focus towards a permanent solution to the problem of migrant labours.
The problem of these migrants can be solved by giving them job. According to the government by May 13 14.62 peopler were given jobs under the MGNREGA and for this payment of Rs 10000 crore has been done and this includes labour wages and construction material cost.
According to the statistics, if compared with previous year, the number of labours have increased by 40 to 50 per cent in May. But with the per family 100 days of work (at present) the problem of getting work might trouble in the coming days.
As wages per day has been increased from Rs 182 to Rs 202 it will benefit each family by Rs 2000 per year but this is not sufficient for the families who have returned from urban areas to their villages. If days of work are increased then the benefit will reach them.
To push housing sector a RS 70000 credit linked subsidy scheme (CLSS) has been brought for the middle income group between Rs 6 lakh and Rs 18 lakh has been extended till March 2021 which is intended to give relief to real estate sector that is in trouble since demonitisation. When this was extended earlier till March 2020 about 3.3 lakh middle income group families had the benefit.
This will further benefit 2.5 lakh families and will bring an additional investment of 70000 crore which will benefit the real estate sector including cement industry, steel and also create jobs in sector. If we talk profit and loss from this package then the street vendors shall get micro mudra loanand also relief for those working at homes.
If housing sector is given benefit it will also be reflected upon the middle income group but not the rural folks or the lower income group. The Rs 1500 crore micro mudra loan to benefit to three crore people and the relief of 2% in interest amount will give relief to small traders.
Thus Rs 5000 crore the street vendors, the labours working in homes and per person Rs 10000 loan will help small traders to fulfill their needs for capital and also save from money lenders. This could benefit 50 lakh street vendors.
(writer is a senior economist)
