Home In On The Recovery

Context: The time for a bold, national relief package to prop up Covid-hit working households is now.

Assessing the pandemic impact on loss of incomes and livelihoods: Three data points -

• Azim Premji University report: Noted that in 2020, nearly half of formal salaried workers moved into informal work, with women being more adversely affected.
  • Between March and August, the average Indian household’s income decreased by nearly Rs 25,000.
• Study by Jean Drèze and Anmol Somanchi: Show that two-third of surveyed households report increased hunger and reduced consumption (before the second wave).
• Stranded Workers Action Network (SWAN) report: Survey of around 8,000 workers between April 21 and May 31, 2021, found that 92% had not received any payment since lockdowns began, 76% had at most Rs 200 in hand, and 82% had, at most, two days of rations left.

Way forward:

• National relief and recovery package: The demand has been endorsed by Working People’s Charter by over 70 worker organisations.
  • 4 Core entitlements: For 82% of all households -
    • Free food grains to those within and outside the public distribution system (PDS).
    • A household crisis transfer of Rs 3,000 a month for six months
    • Increased budget and expanded work allocations under MGNREGA
    • Initiation of employment-intensive urban public works programmes.
  • Expand targeting: Begin with households within the National Food Security Act (NFSA) beneficiaries, which accounts 230 million households (67% of total), accounting for pandemic worries and migrant crisis, add 40 million households to this, totalling 270 million households.
  • Extend food allocation to non-PDS card-holders: As Food Corporation of India (FCI) warehouses have 100 million tonnes of grains (more than three times the buffer stock norms).
  • Economic feasibility exists: A household crisis cash transfer of Rs 3,000 a month for six months to 270 million households will cost just 1.97% of the estimated 2021-22 GDP of Rs 225 trillion.
• Revamping MGNREGA: Implement already existing precedent of 150 days of employment per household for disasters and initiation of labour-intensive urban public works programmes.
• Tackling malnutrition: The fifth round of the National Family Health Survey indicates that child malnutrition worsened between 2015 and 2019 in many states.
  • Any relief must target specific additional provisions for families with children through anganwadis and midday meals, including providing eggs.