A day after his meeting with the chief minister, Prime Minister Narendra Modi addressed the nation on Tuesday, 12 May and talked about an economic package and Lockdown 4.
He talked about ‘Atmanirbhar Bharat’ (Mission Self-Reliant India) to tide over the coronavirus crisis. Stressing on the fact that India could not be controlled by the virus, he also announced “lockdown 4” after 17 May, which would be in a new form with different rules.
What will the package be used for? How does the government plan to utilise the funds and in what form? The Quint's Editorial Director Sanjay Pugalia decodes the Prime Minister’s address.
Here are a few points:
- It is clear that we will have to stay in lockdown for a while. There might be a fifth lockdown too.
- In this 20-crore package, nearly 6-8 lakh crores will be new. The remaining amount will be repurposed.
- The fiscal deficit will be digested by global reading agencies as India is not the only country taking out such measures.
- This step will allow more measures to help the economy from sinking further. It will only act as a support.
- Not right to call it a 'stimulus package,' it is a 'rescue and relief' package.
The PM said that the package, estimated to be around 10 percent of the GDP, is intended to help fight the COVID-19 pandemic. The PM also stressed on the use of country-made products in a bid to boost small and local businesses.
Talking about the fourth phase of the lockdown he said, “Details of lockdown 4 will be shared after suggestion from states, before May 18.”
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