Video Editor: Vivek Gupta
The government announced a relief package worth Rs 20 lakh crore to tackle the economic problems faced by the nation amid the COVID-19 lockdown. Finance Minister Nirmala Sitharaman seems to be nudging banks to give money as the government will back them. She also talked about solving the liquidity problem and helping MSMEs.
To this, Rathin Roy, the director of the National Institute of Public Finance and Policy (NIPFP) says that the first part of the relief package clearly indicates that the government will be spending little from its own pocket. “That might change later,” he said. The value of the first part of the package is around Rs 6,40,000 crore, but in reality, the government is spending only Rs 14,000 crore.
“The government isn’t giving any money to MSME’s, it is just paving the way for them to get loans. On the other hand, on an individual level, the government isn’t giving any money but rather making means for the individual to keep their existing money with themselves for a little longer,” Roy added.
On the topic of taxes, Roy said taxes have not been forgiven but simply deferred to a later date.
On being asked if this package would be able to save the economy, he said, we will only get to know this by December and it would mainly depend on the revenue we earn from the health sector, as well as how the Rabi and Kharif crops do this year.
To conclude, he says that India becoming atmanirbhar is only a hope as of now, no strategy has been devised yet.
Can India actually become atmanirbhar (self-reliant)? Watch the video for the full interview.