” COVID-19 – Treasury Emptied of Contents ” – June 7, 2020.
What was achieved in 4 short hours on March 24, 2020, as a precautionary measure against the demonic force, COVID-19, made the economic events taking a dramatic turn for the worse in the weeks that followed.
The general perception that COVID-19 spreads fast is also getting stronger. Lifting the lockdown by many States is also becoming a dead ‘duck.
Management experts usually discuss unveiling of any novel idea, event, or a project in terms of planning, coordination, programming, directing, and controlling. COVID-19, evil and dangerous as it can be, provided no time for anyone to put on the thinking cap in this situation. Everyone stands overwhelmed by the complexity and intricacy of the economic fall.
Crores of people have lost their jobs, lost their primary means of living, lost their businesses, and languishing in isolation. The condition of migrants is a pity. Nobody knows who is to be condemned. They wanted to go back to their native places and even willing to die there. The Government made efforts and arranged for their travel, but again after significant delay.
In April the Government’s revenue was Rs 27,548 crores of rupees. The expenditure stood at 3.07 lakh crores. To meet this expenditure the government had to take loan(s). Borrowing in this financial year is expected to be about 12 lakh crores of rupees. Hence, the need to open the economy. Hence, the need to lift the lockdown.
Unfortunately the only thing that is growing seems to be the Coronavirus.
Fall in Income = Fall in Treasury Wealth.
Finance Minister’s statement yesterday that no new projects or schemes will be started is a reinforcement of the reality that economy is not fairing well.
It is quite understandable that COVID-19 control related expenditures placed a restraining impact on spending while being forced to exercise considerable restraint in ignoring criticisms. PM’s Garibh Kalyan Financial Scheme, and those schemes announced under ‘Independent Programs’ are the only others that gained the exception.
COVID-19 is an unexpected threat. But, it cannot remain an excuse for not being able to come out with ideas for protecting the people from its ills – be it in terms of public health or the economy of survival.
The best that can be done at this moment is to seek expert views from the learned and experienced. To think that the Government has not made this is to imagine that birds can’t fly.
India is also adopting measures that are widely implemented in many other nations. Personally, I am at a loss to offer any solution other than establishing a “Special Global Fund” that can be distributed among the needy nations based on : (a) the nature and severity of COVID-19 in the country ; (b) the country’s independent ability to marshall the available resources for control ; (c) the country’s shortfall in terms of effective control ; (d) the country’s contribution in terms of global welfare in future ; (e) the country’s past conduct in times of war, criminal record, etc., and (f) the country’s relationship in its neighborhood.
WHO, UN, IMF are the ones that can take the lead in this exercise.
Nationally, big profitable corporations and top 1 – 5% of wealthy need to play a big role in this crisis.
I cannot be fooled into thinking that some of the above measures are not known already.
There is nothing new in this world. It is time to display – truthfulness, sincerity, honesty, productivity, and hard working qualities of human beings than ever before.
“Stop craving more, but start saving more”.
This alone can transform our “Fall in Treasury Wealth” into “Full in Treasury Wealth”.
” Dieu avec nous “
Sunday, June 7, 2020 – 12.19 p.m. (IST)
Tidbit : ” Only buy something that you’d be perfectly happy to hold if the market shuts down for 10 years”.