Page 11 - Issue 01
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India’s GDP. RBI announced liquidity and reconstruction company. Fourth, there is no
measures worth of Rs. 12.71 lakh crore till the end additional tax in the budget. The expenditure will
of The government package consists of measures be borrowed from market or through
for the poor and vulnerable groups, health, MSMEs disinvestment. Fifth, there is some push to health
(micro, small and medium enterprises), sector.
agriculture, manufacturing etc. It also includes the
much debated agriculture reforms which became What are the lessons learnt and policies
three farm laws later. On manufacturing, under needed to improve growth, equity and
Atmanirbhar 3.0, government announced Rs. 1.45
employment?
lakh crores production linked incentive scheme
There are several lessons on different sectors due
for 10 champion sectors.
to the pandemic. First lesson is on health sector.
Central and state governments can tackle the
Apart from the Central government, several state
current ‘second wave’ better than the ‘first wave’
governments have initiated innovative
of corona virus because of the experience. We
programmes to help the informal workers and the
need to improve India’s health sector at different
unemployed poor. Kerala government for example
levels including states and districts. Second lesson
has announced a Rs. 20,000 crore package.
is on lockdown. Initially, lockdown was needed to
prepare for taking care of the infected patients. It
There are some good things in the recent Union
had adverse impact on livelihoods although it
budget 2021-22. First, it is transparent on fiscal
might have saved lives. But, overtime, it is viewed
deficit numbers by including the earlier off-budget
that lockdown is not the solution for controlling
numbers. Second, budget has given push to capital
the pandemic. The country has to live with the
expenditure and infrastructure. Capital
pandemic by following covid appropriate
expenditure increased from Rs.4.1 lakh crore in
behaviour without lockdowns for quite some time.
this year budget to Rs.5.5 lakh crore next year
budget (around 35% increase). Further Rs. 2 lakh
Third lesson is on education. Online education is
crore of capital expenditure were allotted for
not efficient one as compared teaching physically
states and autonomous bodies to utilize. Budget
in the classrooms. There is also digital divide in
also announced a DFI, development financial
education between haves and have nots. Even
institution to promote investment. Third, the
those who have computers and other equipment,
budget made directional change with reforms:
connectivity is a serious problem in many areas of
asset monetization, privatization of banks, FDI
India. Fourth one is on work from home. It is not a
increase in insurance, setting up of asset
problem for those who have relatively bigger
houses to work from home. The houses are too
small to work from home for the middle class and
the lower middle classes. The poor and informal
workers including gig workers can’t afford to stay
at home unlike the privileged organized workers.
Lastly, one big lesson is on migrant workers.
During the pandemic time, the government and
the employers should take care of the migrants.
There is also need to protect the rights of
migrants. We need to put in place safety nets for
them.
Turning to the economy, several policies are
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