The government has recently announced the disaster management new economic package. According to Union Finance Minister Nirmala Sitharaman, the announcement aims at mitigating the devastation caused to the small businesses by the second wave of the coronavirus. Though the announcement seems pleasant to the ears, it hardly presents any actual respite to an already limping economy. After several announcements and assurances, it’s time people start concentrating on the actual delivery of an economic package. It is too early for the people, as the assurances of loans without guarantee to small businesses by the government did not materialize as was anticipated. The banks failed at providing loans to the businesses despite the union government taking guarantees on their behalf. Due to such a backlog in the working process in India, such announcements and schemes, no matter how robust on paper, ends up benefitting only a handful of people.
Having said this, Sitharaman’s announcement does bring to light the government’s commitment to helping small businesses, at least on paper. But the people want the finance department to first clear the hurdles within it before implementing any new packages. Since the first phase, the country has witnessed several economic packages being announced. A very few people, however, have actually benefitted from such announcements. Therefore, its time the government focuses on implementation rather than an announcement. The entire revenue generation engine of the country has been paralyzed by the virus. The worst suffering states are the ones who largely depend on the union government’s sanctions. Next in the line are the states who have tourism as their primary source of revenue generation. The pandemic has come down heavily on the tourism and entertainment industry, both of which depend on large gatherings. With the country now standing under the shadow of a third wave, there seems to be no light at the end of the tunnel, for people associated with the industry, as of now. Given the pace of vaccination in the country, coming back to normal seems to be a distant dream.
Nevertheless, the government announcement does come as a respite for many business owners. Though the promise of a loan guarantee comes as a respite for many, yet only a guarantee is not sufficient for economic revival, at least not after the devastation caused by the virus. Yes, the measures announced are beneficial, but their implementation and work are too slow to have any major impact. However, the government must realize the flaw in its approach even if it is basking in the glory of mere announcements. It needs to understand that the country needs an actual action plan to revive the economy rather than short-term measures to please a targeted section of people. The country might not be protesting and voicing out against the rising prices and hardships to survive in the country, but this does not necessarily mean that they are not noticing the grim living conditions. The price rise in fuel and essential commodities has already broken records and the frustration is only building up. But when will the economy get back on track?