‘Cash transfers may not be adequate’ 

#GS3 #Economy 

  • The cash transfers and food benefits given to the poor as COVID-19 relief so far may not be adequate. 
  • Facing criticism that the credit-heavy stimulus package does not provide sufficient cash support to people, the Minister noted that the first response of the government under the Pradhan Mantri Garib Kalyan Yojana was to give cash, food and cooking gas to vulnerable people. 
  • This may not be adequate, I grant that. Nothing can be adequate at this time... when people don't have their money earned given to them, during the third in her series of press conferences on the Centre’s ₹20 lakh crore stimulus package. 
  • The Finance Minister side-stepped queries on exactly how much of the stimulus package was actual expenditure from the government as opposed to liquidity financing measures, asking journalists to wait till the remainder of the package was announced. 
  • The important thing to understand is that liquidity is also helping the stressed sector in trying to come out of that stress. 
  • One way could be to give the money from the budget, the other is to do it through a process that is different.  
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