It is being asked and perceived what would be done with Prime Minister’s CARE fund?. A Fund which was started by Indian Prime Minister Narendra Modi on 28 March 2020, for what purpose it would be used?, would it be used for Direct Transfers in accounts of Farmers, Poors, BPL Families or would be used to revive economy at Central level. Thousands or even more individuals, organizations and trustees have donated thousands of crores (estimated) in PM CARE fund directly or indirectly so far, but for what purpose this fund would be used is still a brainstorming question. An Ex- IAS has given his views in the same direction. Saying that ‘no one knows' except Prime Minister, what exact this fund for?
Based on views given by Ex IAS Officer that small and medium level businesses would suffer most in country due to this Lockdown or simply in terms, Coronavirus. Not only in India but across the world. But again is this fund which is being generated on the name of ‘PM CARE fund' would help those businesses to revive back?. Answer is this type of assistance 'not yet done in Indian history'.
It should be viewed and analysed that do these small and medium level businesses deserve a compensation after the health crises in Country?. Use of PM CARE Fund should be done for the purpose that serves most, an expert said. In a row of financial situation after Coronavirus in India an Ex IAS Officer of 1983 batch said that compensation packages for businesses affected by natural calamities has been a practice in many countries, during this type of major crises, but in Indian history hasn’t yet happened.
According to experts it’s necessary to look towards businesses specifically small and medium level, after lifting the restrictions imposed during health crises. At least a loss assessment should be done by Government and somehow try to help them out. It doesn’t mean CARE Fund should be used only for businesses, there is also need to extend toward Daily wages labourers, Health infrastructure buildup, household, farming and other sectors. But small and medium level businesses should be considered, said expert.
Should Read- Will Lockdown Extend in India? Views
The businesses specifically medium and low scale in India would suffer this loss on account of lockdown or pandemic crises. After this some small businesses would need working capital support to recommence their businesses, including funds for wages. Firms will also need investment support to ensure social distancing. Many would also require help with paying their liabilities like rent, servicing of interest etc. Expert said that extending or phasing out of the lockdown continues to make some businesses inoperative, the fiscal package should build in a provision for them as well.
And because it’s a public health emergency declared by the government, the Government should support such suffering businesses. It is not on account of their fault. The Indian government should therefore support such suffering businesses, Garg said, suggesting that the government could make a start with supporting small and self-employed businesses.