Monday, December 21, 2020

Wouldn't it be better to let them keep what they have?

In May 2020, Prime Minister Narendra Modi said, "The Covid-19 pandemic has brought an opportunity for India to be self-reliant for which we have announced a Rs 20 lakh crore (Rs 20 trillion) package which is 10% of India's GDP." Despite this, "total expenditure till October this year increased by only Rs 6,550 crore (Rs 65.50 billion) when compared to the same period last year", wrote Avani Kapur and Sharad Pandey. Ministry data show "a staggering  41 out of a total 55 ministries spent less this year till October, compared to last year", and though distribution of free food through the public distribution system (PDS) was increased to cover 80 million migrants, the responsible department of consumer affairs and public distribution "spent 9% less this year than in the same period last year". This can only mean that the government has not paid the Food Corporation of India or state governments their due. Naturally, capital expenditure also declined. The government sanctioned Rs 3 trillion as loans to small businesses but till October disbursed only Rs 1.20 trillion, an inquiry under the Right to Information (RTI) Act discovered. According to the findings of the fifth National Family Health Survey (NFHS 5), "The share of children who were stunted (low height for their age) increased in 13 states, while the share of children who had low weight for their height increased in 12 states. "In other words, children born between 2014 and 2019 (that is, 0 to 5 years of age) are more malnourished than the previous generation." It is irrelevant that Modi was elected prime minister with absolute majority in 2014. When asked, "If you had $75 billion for worthwhile causes, where should you start," a group of scientists and economists answered the same way in 2004, 2008 and 2012, and that was, "Interventions to Reduce Chronic Undernutrition in Preschoolers," wrote Udit Misra. "According to 2012 results, each dollar spent towards reducing child stunting results in benefits of 30 dollar." "In India, the benefits ranged from anywhere between $45 and $139." Poor children are missing out on schooling. A study by Azim Premji Foundation found, "Almost 60% of children were unable to access online learning methods, and 70% of parents found online classes to be ineffective for learning," wrote Sayantan Bera. "With classrooms shut and parents losing their jobs in the pandemic, thousands of families are putting their children to work to get by," reported Associated Press. Demonetization hit the poor very hard because they work for daily wages and are the most dependent on cash transactions. Now an expert advised the government to raid people's gold investments. Even the poorest Indian buys gold because she does not trust the government for support. At least the poor can borrow against their gold when all doors are closed. What is the point of taking money away from the poor to pay for helping them? Let them keep what they have.      

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