Punjab Chief Minister Amarinder Singh on Wednesday expressed disappointment at the Centre's alleged failure to address the humanitarian crisis resulting from the lockdown, saying immediate intervention in the unorganised labour sector should have been a top priority in the fiscal relief package.
The comments came soon after Union Finance Minister Nirmala Sitharaman announced Rs 3 lakh crore of collateral-free loans for small businesses, a cut in the tax rate for non-salary payments and measures to provide liquidity to non-banking companies to help them tide over the disruptions caused by the lockdown.
Unveiling the first set of components of the Rs 20 lakh crore COVID-19 economic stimulus package announced by Prime Minister Narendra Modi, Sitharaman said Rs 90,000 crore liquidity infusion will be made in electricity distribution companies to help them fight the current financial stress.
Singh said it was unfortunate that the finance minister had not deem it fit to balance the needs of the MSMEs, NBFCs and the housing sector with the urgent requirements of the lakhs of migrant labourers facing unprecedented problems due to the current crisis.
Citing the prime minister's emphasis on securing 'jaan' with 'jahan', the chief minister said the first set of announcements by the finance minister showed no intent at protecting lives.
The MSMEs, the housing sector, etc., have to first survive, and then take the leap to the revival stage. And how will they survive without their workers, who have left them in hordes and seem in no mood to return any time soon, the chief minister asked, urging the Centre to take note of the woes of the labourers, especially in the unorganised sector, to address the immediate challenges for the national economy.
While the implications and the impact of the reliefs announced by the Union finance minister would need more analysis, the chief minister, in a statement here, said on the face of it, the MSMEs had not received the much-needed bailout package. Instead, they were being offered loans, which will only end up plunging them into a deeper debt crisis, he added.
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Even the MSMEs working in the critical health sector have not received any special incentives to give them the impetus that they need right now to support the COVID battle, Singh said, lamenting the absence of any serious thought in prioritising the nation's needs at this critical juncture.
Pointing out that Punjab had 2.52 lakh industries, of which only about 1,000 were large, the chief minister said given the magnitude of the problem, the Centre would need to come out with a massive package for the MSMEs to resume operations.
And only when the MSMEs start opening up will the migrant labour return to the state, he added.
Even the relief for the power sector was inadequate, said the chief minister, adding that while PFCs and RECs have been directed to extend loans to the state-run power utilities against their receivables, there has been no directive to keep the interest rate at par with the market.
As for the salaried middle-class, the deferment in IT deadline and reduction in TDS could hardly be termed a relief measure, he noted.
And how can refunding the tax payers' own money of the previous fiscal be deemed a relief measure is beyond understanding, Singh further quipped.
The announcements made on Wednesday, the chief minister said, appeared to be aimed at reviving the economy in the long term and not focused on giving the urgent financial support needed by the critical sectors of the economy.
He said he hoped that the next set of announcements would see some concrete measures for the unorganised labour sector in particular and also address the grave unemployment crisis staring at the country.
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