Ranchi: Economists in Jharkhand say they are expecting special relief packages in this year’s Union Budget to tackle humanitarian crises faced by migrants and others in the state after the Covid-19-induced lockdown. Union finance minister Nirmala Sitharaman will table the Budget on Monday.
Noted economist Jean Dreze said the government will have to think of strong and robust measures to help the economy back on track but it must equally take into consideration the existing humanitarian crises.
Referring to the economic survey, which projected double-digit growth in the next fiscal, he said, “When we talk of double-digit growth rate, are we talking about the pre-lockdown baseline or the current situation? We have to think of strong measures so that the economy bounces back to reach a level better than what existed before the pandemic broke out.”
He added, “The government should also acknowledge the prevailing humanitarian crises and give some stimulus in the form of debt relief. There is possibly no other way than giving money into the hands of those who have lost all options of livelihood during the lockdown. Extraordinary situations warrant extraordinary measures to bring the economy back on track.”
Another economist, Ramesh Sharan, too, stressed on the need for a special package centred around migrants and labourers for states like Jharkhand that are confronted with issues of migration.
He said, “The biggest challenge from the lockdown and the pandemic was the migrant crisis that showed exodus do take place from many states due to unavailability of opportunities. Hence, I am looking for a special package for this sector for a state like Jharkhand.” Sharan stressed that the assistance could be in the form of direct benefit transfer (DBT) or some other measure but the emphasis should be in putting money in the hands of the vulnerable class.”
Sharan further said, “The government shouldn’t worry about the fiscal deficit immediately and another priority should also be to speed up the pending infrastructure projects in the state.
He added, “Investment is a must for social sectors — mainly health and education. If the National Education Policy (NEP) is to be implemented in Jharkhand, we must address the critical challenges that exist here. For instance, the NEP says anganwadis should be converted into schools for Class I to V, but in a state like Jharkhand, there are severe critical gaps that need to be addressed immediately for the upgrade.”
Economist Harishwar Dayal, who has prepared economic survey reports for the state in the past, said he was looking for a special package to build infrastructure in the Jharkhand. He stressed on the need for an increase in central shares and wages under the social security schemes and the MNREGA. “The Centre must increase its share for social security schemes as it hasn’t been revised for long. Similarly, our MNREGA wages are currently fixed at Rs 194, much lower than the minimum wage rate, and a hike is necessary to address issues faced by migrants,” he said.
Both Sharan and Dayal were also of the view that fiscal incentives and support for the MSME sector will help create jobs in both the public and private sectors in the state.