A CALL FOR A NATIONAL RELIEF AND RECOVERY PACKAGE: If Not Now, When?

The impact of the two COVID waves and attendant lockdowns on Indian households and workers cannot be overstated. Even before the devastating second wave, several sources suggest that millions of households became poor, reversing hard-fought gains in poverty reduction. More than half of the informal workforce lost work and incomes, and over two-thirds experienced increased hunger (see Annexure 2 in this note). Poorer households have borne the brunt of the impact and inequality has, without doubt, worsened and deepened. The ongoing second wave and localised restrictions have not only exacerbated the shocks of 2020 for the urban poor and migrant workers but have also made rural households and non-poor households newly and deeply vulnerable. Women, children, and socially disadvantaged groups, in particular, are at a higher risk of falling behind over the longer term.  Unless bold steps are taken, these effects may be long-lasting.

Even prior to the pandemic, the Indian economy had experienced several quarters of economic slowdown resulting in high unemployment and wage stagnation. The income shock of the pandemic has further depressed aggregate demand. Beyond the necessary focus on vaccination and health systems, therefore, a rapid macroeconomic recovery requires an urgent response in the form of a National Relief and Recovery Package to: (a) protect life, (b) partially compensate for lost livelihoods and income, and (c)  to boost demand in the economy for faster overall recovery. Without the direct support of such a Package, simply unlocking the economy will not lead to a balanced recovery. Advanced and developing economies across the world are investing in similar state-led recovery programmes that seek to boost household income and spending, recognizing the need for large scale relief and recovery interventions into the economy. India must do the same.

This statement focuses on three minimum and necessary elements of this package: food, income, and work. The near-universal impact of the second wave means that we focus on a larger set of vulnerable households beyond, for e.g., just those included under the National Food Security Act (NFSA). The Package must thus cover 33cr households in all which is about 80% of all rural households and 70% of urban households in the country (see Annexure 1 in this note). Building on and expanding the 2020 national relief package, we detail key components in the table below while also suggesting additional measures on loans and credit in Annexure 1.

Clear delivery mechanisms exist with precedence for recommendations on Food and Work, with known and accepted fiscal allocations. For Income, the proposed crisis cash transfer must leverage existing direct benefit transfer systems (NREGA, PM-KISAN, PMJDY, NSAP) with new decentralized systems of direct distribution from ration shops, post offices, panchayats and other local institutions. We anticipate, as detailed in Annexure 1 in this note, that the proposed income transfer will cost the Government of India an additional Rs 5.5 lakh crore, or 2.45% of the projected 2021-22 GDP. The Centre must lead in this package, with minimal cost-sharing with states who focus on delivery and use their own funds to expand the reach of the package, particularly in urban areas.

It is essential that the Government of India recognize the need for directed, equitable and dignified economic recovery for India’s workers and citizens. We urge it to act urgently, following its constitutional obligations as well as global best practice. If not now when?

Initial endorsements:

1. Aajeevika Bureau
2. Andhra Pradesh Domestic Workers Federation
3. Andhra Pradesh Vyavsaya Vruthidarula Union (APVVU)
4. Association of Rural Education and Development Service (AREDS)
5. Asangathit Kaamgaar Adhikar Manch
6. Assam Mazdoor Union
7. Bandhua Mukti Morcha
8. Bhartiya Kamgaar Sena
9. Dagadkhan mazdoor kalyan parishad
10. Dalit Bahujan Resource Centre
11. Delhi Shramik Sangathan
12. Ghar Bachao Ghar Banao Andolan
13. Grameena Koolikaarmikara Sanghatane (GRAKOOS)
14. Habitat and Livelihood Welfare Association
15. Hamal Panchayat
16. HASIRUDALA
17. Hawkers Joint Action Committee
18. Indian Federation of App-based Transport workers (IFAT)
19. International Federation of Trade Unions (IFTU)
20. Jan Jagriti Shakti Sangathan
21. Kaamgaar Ekta Union
22. Maharashtra Kashtakari Sangharsh Mahasangh
23. Mazdoor Kisan Shakti Sangathan
24. National Campaign Committee on Central legislation of construction workers
25. National Centre for Labour
26. National Fish Workers Forum
27. National Hawkers Federation
28. National Workers Movement
29. Partnering Hope into Action Foundation (PHIA)
30. Rajasthan Gharelu Mahila Kaamgaar Union
31. Recyclers association
32. Sarvahara Jan Andolan
33. Shramik Adhikar Manch
34. Telangana Domestic workers union
35. Tirupur Peoples Forum
36. Trade Union Centre of India (TUCI)
37. United Nurses Association
38. Vaan Muhill
39. Working Peoples’ Charter Network
40. YUGANTAR
41. Youth for Unity and Voluntary Action (YUVA)

• Amit Basole
• Babu Mathew
• Gautam Bhan
• Jean Dreze
• KP Kannan
• Rajendran Narayan
• Ravi Srivastava
• Shyam Sundar

• Anand Grover
• Colin Gonsalves
• Dinesh Dwivedi
• Gayatri Singh
• Indira Jai Singh
• Ramapriya Gopalkrishnan
• Roshni Shankar
• Sanjay Parekh
• Vinay Srinivasan

Note: 

• This statement has been prepared by our economist friends Amit Basole, Babu Mathews, Gautam Bhan, Jean Dreze, Rajendran Narayan and Ravi Srivastava after rounds of discussion with trade unions, lawyers and grassroots organisations. 
• We are circulating this statement for endorsement (only by organisations not individual), which will be closed in 2 days (I.e. by Thursday, 10th June 2021 ) and send it to the government and also issue a press release.
• It is important that union /worker organisations are rallying behind these demands on state and national level both.

Thank you for your kind attention. We look forward to your support.

In solidarity,

Working Peoples’ Charter (WPC)