Coming from opposition leaders and big names in economics, this article talks about the economic scenario in the country, what went wrong and how it can be corrected.
The authors point out there are several things that led to the downfall of the Indian economic scenario, starting from the demonetization, the following policies, and then the recent pandemic and the lockdown imposed due to it.
The authors also say that the policies bought out to correct the scenario and measures undertaken were not in favor of the economy.
There are some factors that are unavoidable, starting with
The MGNREGA or the Mahatma Gandhi National rural Employment Guarantee Act which came to the rescue of the Govt and the people and provided jobs over 120 million people who had suffered in the pandemic and had gone back to their villages.
The jobs sought under MGNREGA were 83% more than the previous years and in the previous two months the numbers have shot up which precisely points out to the fact that there is no V shaped recovery that is going to happen as it was predicted.
The stock markets have soared to a new high and had set records but sadly not all people could benefit with it and it was good only a small segment of the population.
The weakness can be spelt out in the following way
There was a decline in the asset price and supply shocks added to it which resulted in inflation and due to inflation, the RBI followed a tight monetary policy.
Due to this the private investment slowed down and affected the whole economy, no jobs could be created and growth became sluggish.
The benefits couldn’t be reaped from the external sector as the Govt followed a protectionist strategy which was inward looking with barriers etc. The services that could well be exported were affected and many lost livelihoods.
The Govt’s response in this regard was underwhelming as it could not save the people to fall in the net of poverty by providing safety.
In the employment scenario, 12 million adults by the month of December were pushed out of the workforce that added to their unemployment scenario.
The Govt’s favor to the corporates in the form of rate cuts, tax cuts did not help in growth neither in creation of jobs.
The controversial or ill thought laws have been bought out like the Farm laws that have just added to the problems and no where speak about the betterments of the distressed agricultural sector.
The fiscal deficit of the Govt has also widened where it could not earn as much as it imagined and was less than half of it.
The solutions and the way forward are as follows:
The Govt has to analyze the situation well and go to the root cause.
The public health expenditure has to go up from 70000 crore rupees to 1 lakh crore rupees.
With hostile neighbors we need to scale up the defence budget to at least 3% of the GDP.
There must be more public investment or expenditure which could result in creation of jobs and demand in the economy.
The basic income kind of a solution has to be provided to the people for at least bottom half of the population for 6 months.
Then we can come to a better position in the economic scenario.
Motion of Thanks
The motion of thanks or the President’s address is provided for in Article 87 of the Indian constitution.
Article 87 provides for the special address by the President. The article provides that at the commencement of the first session after each general election to the House of the People and at the commencement of the first session of each year, the President shall address both Houses of Parliament assembled together and inform Parliament of the causes of its summons.
This happens once in a year and only after a new Parliament is formed post general election.
The President speaks of policies, the programs, the work among others of the Govt. also indicates the legislative business that needs to be undertaken.
The members can raise discussions and debates which can amount to criticism against the policies by the Govt.
Three days are allocated for the discussion of the motion of thanks and there is the place for amendments. If they are made then it is put to vote in the amended form.
When it is put to vote then the motion has to be passed or else it means the defeat of the Govt. it is also the way the Parliament expresses the lack of confidence in the Govt.