Former finance minister P. Chidambaram on Wednesday called upon the Narendra Modi government to roll out on an immediate basis, a mechanism to put cash and food in the hands of the poor and the vulnerable sections who are the worst hit by the coronavirus lockdown and recommended a 10-point plan to do it.
Describing the announcement of a nationwide, 21-day lockdown as a watershed moment in the battle against COVID-19, Chidambaram stated now was a time to “put behind us the debates that took place before March 24”and look upon the restrictions as “the beginning of a new battle in which the people are the foot soldiers and the PM is the commander.”
Noting that while '#STAYHOMEINDIA' is a great rally cry, the veteran Congress leader said people would need money and food, for which the government must think and plan not only for the next 21 days but for a few weeks beyond the lockdown. He went on to suggest a 10-point plan, intended to put cash and food immediately in the hands of the poor and vulnerable sections, and sought an immediate announcement of relief for them.
Among Chidambaram's suggestions are doubling the amount, both paid and payable, under PM-KISAN to Rs 12,000 and transferring the additional amount immediately to the bank account of each beneficiary as well as bringing tenant farmers under the scheme and transferring Rs 12,000 to their accounts in two equal installments.
He sought transfer of Rs 3,000 into the accounts of each registered MNREGA worker. “There will be some duplication despite the de-duplication efforts made by seeding Aadhaar in these accounts. There will be cases where the beneficiary received a double payment. There will be some mistakes. Does not matter. Even allowing for 15 per cent of ‘wrong’payments, it is worth doing these cash transfers,”he said.
For the urban poor, he said Rs 6,000 can be put into the Jan Dhan accounts of the beneficiaries, adding that the 'no frills or zero balance accounts' opened before the Jan Dhan scheme was launched should be included in this.
Chidambaram suggested that every ration-card holder should be provided, through ration shops, 10 kg of rice or wheat free as a one-time measure in the next 21 days.
He said the government should ask all registered employers to maintain current levels of employment and wages. “Guarantee to such employers who do so that the wages of the employees will be reimbursed by the government within 30 days of payment,”he said.
And for those people who do not fall under any of the above categories, such as the homeless and destitutes, he said they should be registered in every ward or block, and after minimal verification, bank accounts should be opened in their names to be seeded with Rs 3,000 each.
“These are, for the present, one-time cash transfers and the need for more cash transfers can be assessed depending upon the situation as it evolves. You will notice the above plan will address only the immediate challenge of putting cash in the hands of the people who will #STAY HOME. There are many other challenges that have to be addressed in the next few days,”he said.
The other measures suggested by Chidambaram included extension of deadlines for payment of any kind of tax until June 30, and instructing the banks, in the interim, to lend to panchayats, municipalities and corporations against the security of the tax receivables. He said banks should be instructed to extend the date for any kind of EMI payment until June 30.
Also, GST rates be cut by five per cent on all wage goods, essential goods and services, and all goods of mass consumption from April 1 to June 30, Chidambaram suggested.
