After observing lockdown for close to a month, now people of Telangana are feeling hopeful and positive that we are slowly inching towards normalcy.
PM Modi said during his televised speech that lockdown curbs would be eased in areas with lower or no incidence of COVID 19, after May 3rd. However, the extension is effective until April 30th. As May 1st is a national holiday, on account of May Day, which falls on Friday, then the country will go into the weekend. This lockdown comes with a hefty price tag, as it brought the economic activity, to a standstill barring a handful of industries that produce essential products and companies that offer essential services, all other public sector, and private units shut down their operations completely. Rough estimates say that economy has been losing close to Rs 40,000 crores a day on account of lockdown. On the count -21 days, cost India a whopping 8.4 Lakh crores and the extended lockdown will double this economic pain.
If you see, daily there is a great exodus of migrant labour. More than half million are just waiting to return home, and today only the policy for shifting them to their places has been announced. Therefore the economic activities will remain in deep hibernation for some more time now while acute poverty of unimaginable proportion in rural homes, once Corona threat vanishes is set to be the next serious concern.
The present government liquidated the country’s accumulated wealth to keep the fiscal deficit within limits. It also spirited out RS 1.7 lakh crores from the contingency reserves of RBI, assiduously conserved over time, with the tacit help of a willing custodian. Profitable PSUs paid high dividends repeatedly from the reserves. They are nudged to buy back Government stake in other PSUs. LIC, an all-weather milking cow, doubled its investment in risky PSUs from Rs 11.4 lakh crores to Rs 22.64 lakh crores, depleting it’s cash reserves by whopping Rs 10.7 lakh crores between 2014 and 2019. While revenue receipts were dwindling, Government announced a generous tax cut for our most beloved corporates.
When Covid 19 struck, our economy was already in meltdown, with ruling dispensation indulging in ritualistic denials. Unless some shrewd minds put heads together it’s very difficult for the country to come out of this mess. Lest the killer pathogen, Corona puts the economy too on a ventilator.
PM Modi said during his televised speech that lockdown curbs would be eased in areas with lower or no incidence of COVID 19, after May 3rd. However, the extension is effective until April 30th. As May 1st is a national holiday, on account of May Day, which falls on Friday, then the country will go into the weekend. This lockdown comes with a hefty price tag, as it brought the economic activity, to a standstill barring a handful of industries that produce essential products and companies that offer essential services, all other public sector, and private units shut down their operations completely. Rough estimates say that economy has been losing close to Rs 40,000 crores a day on account of lockdown. On the count -21 days, cost India a whopping 8.4 Lakh crores and the extended lockdown will double this economic pain.
If you see, daily there is a great exodus of migrant labour. More than half million are just waiting to return home, and today only the policy for shifting them to their places has been announced. Therefore the economic activities will remain in deep hibernation for some more time now while acute poverty of unimaginable proportion in rural homes, once Corona threat vanishes is set to be the next serious concern.
The present government liquidated the country’s accumulated wealth to keep the fiscal deficit within limits. It also spirited out RS 1.7 lakh crores from the contingency reserves of RBI, assiduously conserved over time, with the tacit help of a willing custodian. Profitable PSUs paid high dividends repeatedly from the reserves. They are nudged to buy back Government stake in other PSUs. LIC, an all-weather milking cow, doubled its investment in risky PSUs from Rs 11.4 lakh crores to Rs 22.64 lakh crores, depleting it’s cash reserves by whopping Rs 10.7 lakh crores between 2014 and 2019. While revenue receipts were dwindling, Government announced a generous tax cut for our most beloved corporates.
When Covid 19 struck, our economy was already in meltdown, with ruling dispensation indulging in ritualistic denials. Unless some shrewd minds put heads together it’s very difficult for the country to come out of this mess. Lest the killer pathogen, Corona puts the economy too on a ventilator.
