West Bengal Chief Minister Mamata Banerjee on Wednesday questioned the “actual size” of the Prime Minister announced and the Union Finance Minister explained economy revival package. The “total [thing] is a big zero,” she said.
Ms Banerjee’s Finance Minister Amit Mitra explained the argument to say that the actual size of the economic package was “two percent of the GDP and not 10.”
Ms Banerjee announced plans to boost the rural economy by developing small projects on 50,000 acres of fallow land, while indicating that a World Health Organisation (WHO) defined data collection and processing from households would be instituted to forecast pandemics and to assess the impact of COVID-19.
“We expected that the States will get something which it did not. There is nothing for market development to encourage public spending, employment generation or development of health infrastructure to combat post COVID situation. Nearly 10 lakh of 20 lakh crore is already given,” she said.
Mr. Mitra said the Prime Minister’s announcement was misleading. “Out of 20 lakh crore, eight lakh has already been given as liquidity. 1.7 lakh more also has been given. So what is left is about half of 20 lakh crore, that is 10 lakh crore. Out of that a limit of borrowing – 4.2 lakh crore – is fixed which finally will reach people. It is 2% of GDP, not 10%.” The 8 lakh crore would not reach people immediately because of the lockdown and the entire process was slowed down.
The Chief Minister announced plans to boost the rural economy. “We are announcing a revolutionary project – Matir Shristi [Earth’s Creation] – which is to develop rural industry on a land bank of 50,000 acre. The farmers cannot work in this land. Additionally, the government has its khas jomi [government acquired fallow land]. In five districts – Bankura, Birbhum, Purulia, East and West Bardhaman districts – work will start,” she said. The idea was to develop cooperative bank backed projects like horticulture, animal husbandry and fish farming to generate employment and create a market using reasonably successful self-help groups.
“Work has started. 6.500 acres of khas jomi earmarked and 550 micro-plans [each to be raised on 10-15 acres land parcel] identified. Now is the time to boost rural economy. Rural Bengal will now resuscitate urban Bengal,” Ms Banerjee said.
‘A part shift in policy?’
An expert said the announcement appeared “on the face of it” to be a part shift in policy, as after dabbling with big capital driven industrial economy, the Chief Minister underscored need to energise the rural, agrarian economy.
A retired bureaucrat said, “In a way, it is a throwback on what the Left Front tried but could not implement – to stimulate Bengal’s deep agricultural base and to initiate multi-level small industries by boosting the cooperative sector”.
Ms Banerjee said Matir Shristi would be dependent “on 100 days’ work minus local contractors.”
Ms Banerjee also spoke about a data research project – Sentinel Survey – to collect data about COVID-19, its impact and future pandemics. The WHO defines the sentinel surveillance system as one which is used to obtain “high quality data…about a particular disease that cannot be obtained through a passive system.”