Big News – Millions have lost their jobs, How’s government of India making money?
Everything in the news these days is related to #COVID19.
A Center for Monitoring Indian Economy (CMIE) report has stated that over 12.2 crore people in India have lost their jobs due to the lockdown. This comes to about 10% of the whole population. The report also states that the unemployment rate in India now stands at 27.1% (by the end of April 2020). It will take a lot of efforts to revive the economy back to normal.
S&P states that India should work on a stimulus package especially for the weaker section of the society.
The stimulus is necessary to support the vulnerable segments of the society and also to prevent additional structural damage to the economy amid the lockdown which has suddenly stopped the business activity, S&P said in a report as per Money Control.
Nobel Laureate Abhijit Banerjee has recommended, “India should consider a big stimulus and give cash in hand to create demand and prevent chains of bankruptcies to save the economy hit hard by the nationwide coronavirus lockdown.”
He also recommended that India should come up with a stimulus package for the bottom 60% of the people. This will help in quickly reviving up the Indian economy as this will boost spending at the bottom of the pyramid.
A trader’s body CAIT has said that the Indian retail sector lost Rs 5.50 lakh crore during the lockdown. It also stated that out of current total of 7 crores 1.5 crores traders might permanently shut down soon.
Here is how the GOI making money –
They have started liquor shops as we share with you yesterday. Some state governments are also charging an extra tax on the purchase of liquor ranging from 50% to 70%.
They have also increased the excise duty on petrol and diesel by Rs 10 and Rs 13 each respectively. While the retail price will remain the same. The hike will be absorbed by the Oil marketing companies (OMC’s) as per the Fin Min.
That’s all for today 🙂