The menace that started to wreak havoc in China in December-19 has brought nations across the globe on their toes. Even the most powerful nations like- USA, UK, France and India are reeling under the turmoil caused by this deadly disease. None of us would have imagined that we would have to get ourselves locked up in our rooms to fight against a disease.
India, being an emerging economical power started experiencing the heat of COVID-19 from February-2020 onwards. Slowly and gradually COVID-19 engulfed the normal life in India in its devilish clutches. Seeing the ferociousness of the disease Indian Government imposed a nationwide lockdown on 24th March, 2020. Activities in all spheres of life came to a halt.
On 28th March, 2020, the Prime Minister of India announced the establishment of PM-CARE FUND. It was aimed to collect voluntary donations from people in the fight against the disease. This fund is in addition to the PMNRF that was created by the Late Prime Minister of India Pandit Jawaharlal Nehru. As per the official website, its revenue and expenditures are shown below-
Within a week’s time of setting up of PM-CARE Fund, it had a collection of about INR 6500 crores. The amount is no less. Since then many NGO’s, companies, government employees and several other agencies have been donating voluntarily to compensate the government for its increased social and welfare burden.
Moreover, USAID has donated India USD 5.9 million as a support to India to protect itself against COVID-19. World Bank is also helping India by donating USD 1 billion fund as a part of India COVID-19 Emergency Response and Health Systems Preparedness Project. Russian arms frim too has donated USD 2 million. In addition to this IMF is also under consideration to grant USD 4 billion to India as emergency financing. Meanwhile, Asian Development Bank-ADB has already approved a loan of USD 1.5 billion to India.
While, donations and loan processes were in Process and under progress India saw a silver lining during this harsh situation. Owing to the decline in oil demand, because of industries and transportation shutting down global oil prices plummeted. Statistically, India is expected to save whooping USD 45000 million on its oil imports, which can be understood from-https://www.gettinggyaan4u.com/2020/04/india-to-capitalize-upon-the-opportunity-of-falling-crude-oil-prices/.
As, a result of 2 consecutive lockdowns, Indian economy has suffered a major blow. Barely any activity could be conducted. Sources of income to both public and government came to a standstill. Government which used to earn from taxes levied upon- sale & purchase of-vehicles, properties, liquor, construction materials, petroleum, etc., VAT and also excise and import duties is finding hard to replenish its treasury. Let us have a look at the list of revenues earned by the Indian states in the previous financial years as per https://m.rbi.org.in/Scripts/PublicationsView.aspx?id=18930 (figures are in INR billion)-
While the GDP for the current financial year is slated to fall below 2%, the Indian workforce is staring upon its bleak future. Companies have given the pink slip to their employees, some have revised their CTC’s, hiring frozen, labours are not getting any work, cab drivers are losing business, street-side vendors are shut down. This really a very critical phase where according to the Centre for Monitoring Indian Economy (CMIE) unemployment rate in India has soared to more than 27% for the week ended 3rd May. Worst hit section is the daily wage earner and the salaried middle class. Many of the state governments have decided to defer the salary of their workforce while having reported a decline in revenue collection of more than 70% in the first phase of lockdown that ended on 14th April. The gravity of the situation can be gauged from the very fact Maruti could not sell any vehicle in the month of April and not a single travel company could accomplish a travel for their clients.
Now with the start of lockdown-3, Government has revoked restrictions up to a certain degree on economic activities across the country based on the zones i.e. red, orange and green into which a particular area fall.
One such decision was to allow the sale of Liquor as soon as Ministry of Home Affairs issued the directives for the gradual uplifting of Lockdown. State governments levy excise duty on consumption and sale of liquor of consumptive uses. It also imposes VAT as liquor is not under the ambit of GST. Thus, revenue from liquor accounts to 10-15% of the total revenue collection for the respective state governments. In 2018-19, state governments and UTs collected a total revenue of Rs 1,75,501.42 crore from excise on liquor against the revenue of Rs 1,50,657.95 crore in 2017-2018. On the contrary, it is an established fact, be it joy or be it sorrow, be it a lottery or be it a bankruptcy liquor shops are always thronged by people from all realms of under different circumstances. Taking advantage of the same, some state governments- Delhi, Andhra Pradesh upon seeing the response upon re-opening of the liquor shops have imposed special corona fees. They have levied additional taxation of 50-75% to compensate for the loss in revenue collection.
The question arises, is it so important to sell liquor under such an unorganized manner to earn revenue while putting the efforts of enforced lockdown under jeopardy. India witnessed the mess that was created was completely unacceptable. Now, those who have been crowding the liquor stores are surely no less than trickling time bomb of probabilistic corona patient.
Similarly, despite the world is experiencing a downfall in oil prices, the government has issued directives to hike excise duty on petrol by INR 10/litre and diesel by INR13/litre from May 6. In a nutshell, when the government should subsidize the commodities to propel demand it is levying burden upon the common public to fill up its coffers. Indeed, a very sad state of affairs when we also came to hear about the railways levying an extra charge on INR 50 per tickets of the stranded migrant workers returning back to their natives. Who is going to think and pay for the hardships they had to suffer because of the much-needed enforced lockdown? Is it not the government that should devise some meaningful strategy to lift up the financially broken and mentally weakened public amidst the Corona misery? The after-effects of subsequent necessarily required lockdowns are yet to emerge out completely.
