Letters to the editor dated May 18, 2020

| Updated on May 18, 2020 Published on May 18, 2020

Fiscal stimulus

This refers to ‘As migrants head home, FM allocates ₹40,000 crore more for MGNREGA’ (May 18). In the present scenario, the likelihood of recovery and up-gradation of stressed and bad assets is not only slim but the chances of standard assets turning into bad assets will be more due to economic activities becoming dormant. To execute the credit-linked stimulus speedily, the banking sector must not be urged to adopt target-oriented lending as this has resulted in considerable loan-related frauds and bad loans. Need-based speedy disbursal of credit is crucial to boost economic activities.

The rising risk-aversion in the sector is detrimental to credit expansion and will defeat the objectives of enforcing the fiscal stimulus. Therefore, it is imperative to motivate the bankers to take prudent credit decisions and the government must demonstrate that wrong-doers will not be spared and, at the same time, establish that genuine commercial decisions even if they go wrong at a later date will be protected.

VSK Pillai


Extension of lockdown

This refers to ‘Lockdown 4.0 till May 31, but rules eased for non-red zones’ (May 18). If maintaining social distancing and all safety protocols have not become part of our daily routine in the last two months, we have only ourselves to blame. So, Lockdown 4.0 was actually not warranted now. If the Central government has left it on States’ sole discretion of deciding the zones, then it surely should have left the extension as well to the States.

Even a day of extended lockdown has a huge economic cost, which despite the huge relief package cannot be completely compensated. So, all focus should now be on reviving economy. Coming to individual companies, they know better whether they can manage work effectively by allowing employees to work from home or getting them back to office.

Bal Govind


Protect the elderly

From the beginning of the pandemic a lot of discussion has been going on co-morbidities and the elderly. The average age of death due to corona in India is 75 years, and 83 per cent of the deaths are of those already suffering from co-morbidities.

Protecting and taking care of the old and sick who are most vulnerable is our moral duty. Thus, we need to adopt social behavioural changes. Elders in our houses should not be allowed to go out unless there’s a medical emergency, even in medical requirements they must be accompanied by a person.

Ravi Teja Kathuripalli


EPF contribution

This refers ‘Irony behind EPF contribution cut’ (May 18). By restricting the threshold of employers’ and employees’ contribution from 12 per cent to 10 per cent, the government is indeed the biggest beneficiary. The interest rate on EPF is the highest amongst all financial instruments and by cutting the contribution, it is a bonanza for the government.

Deepak Singhal


Sovereign rating

This refers to ‘India is unfairly rated’ (May 18). Indeed, one cannot blame the credit-rating agencies for their pessimistic rating of India. In the light of the current vulnerable market conditions, growth headwinds, the disinvestment fiasco, NPA-hit banking system, and falling non-tax revenues, the fiscal deficit has been rising. Though we have ample foreign exchange reserves and a current account deficit that is under control, the high public debt rationalises the current rating. .

NR Nagarajan


Low denomination notes

One of the many problems people are facing due to coronavirus and the accompanying lockdown is non-availability of currency notes of smaller denomination. Due to the lockdown, people have not been able to frequent shops and banks from where they normally get such notes. The government and the RBI should look into the matter and do the needful.

TR Anandan


Published on May 18, 2020

A letter from the Editor

Dear Readers,

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