Economic stimulus: More cash transfers need of the hour

Hyderabad: Describing the Rs 20-lakh-crore stimulus package announced by the Modi government to tide over economic crisis induced by Covid-19 and its associated lockdown as a positive step, K Narasimha Murthy, banking and financial expert, however, felt that more cash doles would have helped small vendors and those who practice traditional crafts such as ironsmiths and potters.

"The stimulus package is good. But people who practice hereditary professions such as ironsmiths, potters, carpenters, barbers and bamboo weavers are suffering a lot.

The central government should have announced cash doles to support these people and communities. At least Rs 5,000 per month for a couple of months would have a made a lot of difference to these people. That's the need of the hour," Narasimha Murthy told The Hans India.

He also underlined the need for more cash transfers to accelerate economic recovery. "Of the Rs 20 lakh crore announced, nearly Rs 5-6 lakh crore has been allocated for cash transfers. The remaining amount will be spent over next one or two years, not immediately," he explained.

Asked how long it would take for the economy to come back on track, he said there would be some green shoots in next three months. "However, the recovery also depends on how Covid-19 pandemic pans out post the easing of the lockdown norms.

If Covid-19 cases rise faster, then economy will obviously take more time to recover, maybe six months or more," he observed.

Murthy pointed out that the central government used this opportunity to undertake major economic reforms.

"That's a super step. But dues from State governments to power utilities and MSMEs have piled up. Efforts should be made to clear these dues immediately," he said.