Why Did Modi Govt Not Give Direct Cash Assistance to Citizens?
Cash in people’s hands would have helped restart the larger economy.
On the morning of 20 September 2019, Finance Minister Nirmala Sitharaman announced a huge cut in corporate tax rates. In a normal situation, such changes are only announced during the budget. Besides, the finance minister presented the budget just a few months back on 5 July 2019. So why the sudden announcement?
Big businesses saved Rs 1,45,000 crores with this slash in taxes. These industry behemoths did not pass on the benefit. They did not set up factories or new jobs, they did not increase salaries of the employees, neither did they reduce the price of the goods for the consumers. Hundreds of big businesses were benefited and decided to keep the money for themselves.
Four months after the announcement of tax reductions, coronavirus gripped the world. In March, PM Modi ordered a sudden total lockdown in the entire nation to contain the spread of coronavirus.
But while daily life came to a standstill with the lockdown, COVID cases continued to climb. Today, millions of people are without a job and no income. Around 6 crore small business have been shut.