ECONOMISTS CALL FOR URBAN JOBS SCHEME
Why in news? A new Urban Employment Guarantee Act is needed to complement the existing rural jobs scheme during the ongoing COVID-19 crisis, said a group of development activists and economists. Recommendations MGNREGA funding to be increased to at least ₹1 lakh crore for the next three months. Relaxation of the 100 days of work […]
DIRECT TAXES REVENUES DEFY LOCKDOWN, JUMP 36.6% IN APRIL
Why in news? Direct tax collection recorded a healthy growth in April 2020 despite the nationwide lockdown and grew by 36.6%. The Central Board of Direct Taxes (CBDT) had convened a video-conference on 1st May 2020, with tax commissioners to review the collection position during the lockdown period. Reduced Tax Collection estimates The government is expected […]
Rs 20 lakh crore stimulus Covid package- Aatmanirbhar Bharat
Why in news? Prime Minister Narendra Modi announced a Rs 20 lakh crore economic package due to the “unprecedented crises” caused by the novel coronavirus. This is 10 per cent of India’s GDP. Details of Aatmanirbhar Bharat The New Deal for Aatmanirbhar Bharat – a resilient India, comprises of around 10% of India’s grade domestic […]
UNFOUNDED OPTIMISM
The Economic Survey of 2020 acknowledges that 2019 was a difficult year for the global economy, including for trade and demand, and by extension a challenging period for the Indian economy as well. The Survey concedes that “a sharp decline in fixed investment induced by a sluggish growth of real consumption” has weighed down growth, which […]
PRINT MONEY, SAVE ECONOMY
Introduction The Major global economies are responding to the COVID-induced recession by adopting unorthodox stimulus measures, including printing money. The US, the European Central Bank, Japan, and even emerging economies such as Turkey and Indonesia are printing money to bring economies back to life. So, can India. What is Printing Money? Central bank directly buys […]
KERALA SCRAMBLES FOR FUNDS AS CENTRE TIGHTENS
Why in news? An alarming dip in the Kerala’s Own Tax Revenue, coupled with a delay and cut in Central transfers, have pushed the State to the edge of a financial precipice. Kerala Down to a trickle A comparison of receipts in April 2019 and April reveals the intensity of the crisis. The Goods and […]
CII PROPOSES DIFFERENT RULES FOR TOP PRIORITY DISTRICTS
Why in news? The country’s high performing economic districts should be allowed to play by different rules in the third phase of the lockdown beginning 4th April, according to the Confederation of Indian Industry (CII). Concerns with Economic Recovery In a CII poll almost half of the CEOSs say an economic recovery will take over a […]
CORONAVIRUS IS PULLING MILLIONS BACK INTO POVERTY
Introduction to expected increase in Poverty The gains the world was making in fighting poverty are now at grave risk. The World Bank says that for the first time since 1998, global poverty rates will rise. By the end of the year 2020, 8% of the world’s population — half a billion people — could […]
MARCH 2020 CORE SECTOR OUTPUT SLUMPS 6.5%
Why in news? The Output at India’s core sector contracted by 6.5% in March, Commerce Ministry data show, reflecting the early impact of the COVID-19 pandemic and the subsequent nationwide lockdown. The index of eight core sector industries, which form 40% of the weight of items included in the broader Index of Industrial Production (IIP), […]
$1.5 BILLION ADB LOAN TO FUND COVID-19 EMERGENCY RESPONSE
Why in news? The Government of India has taken a $1.5 billion loan from the Asian Development Bank (ADB) to fund its immediate response to the coronavirus (COVID-19) pandemic, both in terms of the health and socio-economic impacts. The money, translating to more than ₹11,000 crore, will be spent to implement the containment plan and […]