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.