Letters

Letters to the editor dated June 3, 2020

| Updated on June 03, 2020 Published on June 03, 2020

Bankrolling MGNREGS

This with reference to ‘MGNREGS too can be bankrolled’ (June 3). It’s a one-stop simplified solution for the many major problems our economy is facing. The scheme is well-conceived for boosting overall demand. Since the amount involved is less per household, it will only pep up the low cost consumption goods sector. But the money infused will flow into the system through the multiplier effect and create its own positive impact.

If the scheme is implemented we can see lakhs of first-time borrowers in banks’ books. It will also help create credit discipline. The government should prepare a similar scheme for street vendors to boost the urban economy.

Arunachalam L

Bengaluru

Faster cash transfer

Indeed, cash transfer to the poor and the marginalised at this juncture of pandemic in which they have lost their livelihoods is a must. In this regard, granting loans to the MGNREGS cardholders with little formalities will immediately augment their liquidity and revive consumption.

Since 100 days of work has been committed by the government and there is an increase in the outlay for the scheme, banks can grant loans proportionate to their potential income level and recover them in future. It will be a good demand booster. Since bank accounts for rural people have been opened under Jan Dhan as a matter of financial inclusion, banks can easily reach the cardholders to give loan.

NR Nagarajan

Sivakasi

Boosting growth

Lowering of India’s sovereign rating by Moody’s and slowing of economic growth to an eleven-year low cumulatively flare a warning for India. The foremost takeaway from these two assessments is that though they have surfaced during the pandemic, which has evidently dampened economic spirits, their assessment period precedes it.

While the downgrading may be fodder for criticism pointed towards economic policies of the government, it serves as an opportunity to run a comprehensive impact assessment of policies in place. Unless the government deliberates on reasons for the pre-pandemic slowdown of 2019, it will not be able to register a high growth trajectory in future.

Contrary to what Moody’s may expect, policymakers have to step up and mitigate the worsening trend. Positive or negative, indicators are a reflection of the kind of trajectory we record based on our policies. The rudder still rests on the government’s hands and hence, it is very much upon the government to turn the grim situation to its advantage.

Ravi Teja Kathuripalli

Hyderabad

Pre-validation directive

The latest directive to income-tax assessees to pre-validate their bank and demat accounts is unwarranted as all these accounts are already Aadhaar and PAN seeded. Why issue such a directive now when the existing arrangement is going smoothly?

N Kalyanasundaram

Coimbatore

Cyclone Nisarga

These are indeed testing times for us. Natural disasters in the time of a pandemic disease are hard to cope with and add to human suffering. Cyclone Nisarga has hit the west coast of India coincident with the start of the south-west monsoon close on the heels of Cyclone Amphan hitting the east coast.

Like any cyclone, Nisarga uprooted trees, damaged cars and disrupted train and flight services. Fortunately Cyclone Nisarga, categorised as ‘severe’ has visited with lesser intensity than feared to cause much damage. It was a great relief that human life was not lost to the self-weakened cyclone. The coronavirus pandemic continues to rage and cause immeasurable suffering. Still it has not deterred some people to see the cyclone as a diversion from their pandemic fatigue.

The emergency evacuation of thousands of vulnerable people from low-lying coastal areas to safer locations needed greater effort and care as it had to be done without flouting the social distancing rule to the extent possible. Still it was done meticulously.

G David Milton

Maruthancode, TN

Published on June 03, 2020
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