Covid-19 position as on
8/5/2020
Country Confirmed Recovered Death GDP* Debt to
Fatality
in GDP
India 56,351 16,776 1889 (3.4%) 2.719 68.52%
Trillion
Canada 64,922 28,972 4408 (6.8%) 1.713 34%
Trillion
Malaysia 6,467 4,776 107 (1.7%) 358.582 52.5%
Billion
*As per World Bank Data in 2018
Relief Package by these countries
India
The people of
India is under lock-down since 25/3/2020.
It was extended thrice which lasts till 17/5/2020. Everyone felt that the lock-down is necessary
to face COVID-19. This virus is a
challenge to Medical scientists, WHO, ICMR etc.
WHO & ICMR had to change their guidelines based on inputs from
various sources.
In 2018-19
India’s GDP was Rs.190.10 lakh crore.
India’s finance minister announced a relief package for Rs.1.76 lakh
crore ( 22.6 billion US $) which is less than 1% of GDP. The relief package includes five kg of rice
or wheat plus one kg of pulse at free of cost to low-income family accounting
for 80 crore people for next three months; free gas cylinder supply to 8.3
crore families; Rs.500/- cash transfer to poor people; Rs.2000/- for farmers
(which is from the budget). There was
lot confusion about postponement of EMI.
In addition, many State Governments announced additional ration, cash
transfer. But these measures are highly
insufficient. Nobel laurels on economics like Joseph Stiglitz, Amritya Sen, Abhijit
Banerjee and others like former RBI Governor Raguram Rajan strongly advocates
that India can extend relief package upto 5 or 6% of GDP which works out to
Rs.9.5 lakh crore to Rs.11.4 crore. They
strongly advocate that India can manage this burden by borrowing, adjusting the
budgetary estimate reducing the expenditure on certain heads which are not
urgently required. The Govt. can effect
cash transfer of Rs.5000/- per month to poor people, can extend some
concessions including soft-loan to Micro, Small, Medium Enterprises (MSME).
The Govt.
appealed to the owners of the companies to give salary to their employees for
the lock-down period. On the other hand
the Govt. freezed DA to Govt. employees and pensioners for more than an
year. They did not behave as a model
employer. So, many owners of the
companies ignored the appeal of the Govt.
Canada
Canada has a
population of 3.77 crore in 2019 (like Kerala state). It announced a relief package of 52 billion
Canadian dollar ( 1 CD = Rs.54/-. So, it works out to Rs.2,80,800 crore) on
25/3/2020 to fight COVID-19. It includes
unemployment benefit to 10 lakh people @ 2000 canadian dollars per month for 4
months; Delayed student loan payment for 3 months. The
relief package was approved by Parliament.
The modified Bill caps Ottawa’s emergency spending power at 6 months and
allows a House Committee controlled by opposition legislators to force
Parliament back over spending abuses.
Malaysia
Malaysia has a
population of 3.26 crore in 2019. It’s
PM is Mr. Muhyiddin Yassin. This country
got COVID-19 through travelers from China via Singapore on 25/1/20. Malaysia
announced the first lock-down on 18/3/20 which was subsequently extended
twice. The people can come out of their
houses only to purchase essentials like groceries, vegetables and for
health-care. The lock-down is to end on
12/5/20. Malaysian Govt. first announced
a stimulus package for 4.8 billion US $ out of which 453 US $ goes to tourism
industry which is worst affected by the lock-down. For small businesses in the tourism industry
$ 43 million micro-credit scheme is provided.
Deferment of monthly tax instalment to Hotels, Airlines and businesses
in tourism industry from 1/3/20 to 31/8/20.
Travel document vouchers worth $ 22 per person is provided since March
2020. Provided 6 million $ to tourism
promotion. Incometax relief to the
extent of $ 226 to the individuals is provided for expenses on domestic tourism
from 1/3/20 to 31/8/20.
Provided $ 45
million to help businesses to upgrade the skills of workers in Retail,
hospitality, tourism, electrical, electronic and auto manufacturing.
Usually
the employee’s contribution is 7 to 11 percent of monthly income which is now
reduced to 4%.
Low-income
house-holds will get monthly 200 ringgits (Malaysia’s currency – 1 Ringgit =
Rs.17.43).
MSMEs (Micro,
Small, Medium Enterprises) make-up 98% of Malaysia’s economy. The country’s Central Bank (like RBI), Bank
Negara Malaysia (BNM) provided loan to the tune of $ 453 million to MSMEs @
3.75% interest per annum. Each MSME is
eligible to receive $ 2,26,000 with a tenure of 5.5 years including 6 months
payment moratorium. The Govt. will
provide banks with 80% guarantee on loans.
BNM allocated
$ 226 million to a loan scheme to food production industry for a period of 8
years @ 3.75% interest per annum and $ 9 million is allotted to agriculture
sector.
2nd
stimulus package was announced on 27/3/20 for 250 billion Ringgits.
Workers
earning less than 4000 Ringgits per month is eligible to receive 600 Ringgits
per month for next 3 months.
One billion
Ringgits is to be distributed to increase the domestic production of
Agriculture, Fisheries & Livestock products.
If
the monthly income of a house-hold is less than 4000 Ringgits the family will
get 1600 Ringgits per month; if the income is between 4000 & 8000 then
those families will get 1000 Ringgits; Individuals above the age of 21 having
an income of less than 2000 Ringgits then that individual will get 800 Ringgits
p.m; if the income is between 2000 & 4000 then 500 Ringgits will be
given.
3rd
stimulus package was announced on 6/4/2020 for 10 billion Ringgits.
$ 7.9 billion
was earmarked for expansion of wage subsidies for employees based on the size
of their workforce. $ 2.1 billion is
earmarked for a special grant of 3000 Ringgits for all registered MSMEs with a
turn-over of less than 3 lakh Ringgits or less than 5 employees. By this, 48 lakh workers will be
benefited.
Now
Indian people can understand the difference.
Even though Indian Government also implemented lock-down from 25/3/20
and extended twice which lasts till 17/5/20 announced an economic package once
for 1.76 lakh crore which is highly insufficient. Everyone can witness the plight of migrant
workers families’ sufferings and their determination of going to their home-state
even by foot risking their lives.
(By
D Gopalakrishnan, CHQ VP, AIBSNLPWA at Chennai)
