Congress MP Rahul Gandhi today warned the government of a “catastrophic problem” if it did not put money into the bank accounts of people worst affected by the coronavirus outbreak and lockdown.
Addressing reporters via a Zoom video call, Mr Gandhi also expressed “serious reservations” about the government’s Rs 20 lakh crore package for the coronavirus-hit Indian economy, calling it a “package of loans” that did not provide immediate on-ground relief for farmers and migrants.
“Our people need money. Prime Minister should reconsider this package. Modiji should think about direct cash transfer, 200 working days under MNREGA, money for farmers, because they are the future of India,” he said.
Mr Gandhi highlighted the NYAY scheme proposed by the Congress last year – which offered annual income support of Rs 72,000 to the poorest sections of society – and urged the government to come up with a similar plan.
“The migrant labourer walking on the street needs money, not debt. The farmer who is suffering needs money, not debt,” Mr Gandhi said, adding, “If we do not, this will become a catastrophic problem”.
Earlier this week Mr Gandhi made that same request of PM Modi, asking for direct transfer of “at least Rs 7,500” to the bank accounts of migrants left jobless by the lockdown.
Nobel Prize-winning economist Abhijit Banerjee, in a discussion with Mr Gandhi on the economic fallout of the coronavirus crisis, made the same point.
Mr Banerjee said: “I would say bottom 60 per cent of the population, we give them some money, nothing bad will happen in my view”, adding that a similar practice was being followed by the United States.
The novel coronavirus outbreak – India has reported nearly 86,000 cases and over 2,700 deaths so far – has affected lakhs of people across the country, with migrant labourers and daily wagers among the hardest hit.
Distressing visuals have emerged over the past weeks of men, women and children left with no choice but to walk hundreds of kilometres home in punishing weather, often without money, food, water or shelter.
Mr Gandhi has been particularly vocal about the migrant crisis, repeatedly urging the government to ensure they are fed and allowed to get home safely.
The government this week announced a fiscal relief and stimulus package that had some measures for stranded and struggling migrants, including food rations and affordable housing.
However, the Congress said this was a “jumla” (false promise) package that had no direct benefit for farmers or migrant labourers. Similar concerns were raised by other opposition leaders, including NCP chief Sharad Pawar and CPIM leader Sitaram Yechury.
In his video call today, Mr Gandhi said that unless the government ensured a significant level of demand from consumers across all economic sections, the country would struggle to recover from the fallout of the COVID-19 pandemic.