Information Technology industry veterans on Tuesday nudged the government to help vulnerable sections like daily wage earners and small businesses through a direct benefit transfer (DBT) mechanism and defer loan repayment schedules of the affected sectors in the wake of economic impact of the COVID-19 outbreak.
Sections of society such as the daily wage earners are going to be severely affected and there has to be a DBT-kind of mechanism to help them out, Co-founder and former CEO and Managing Director of IT major Infosys Ltd, S Gopalakrishnan told PTI.
There has to be some mechanism to help individuals and small businesses -- taxi drivers for example --, the former President of theConfederation of Indian Industry said. If they had taken loan, delay loan repayments, give them a moratorium or waiver. Then, several payments are due to the government by March 31, if they can be delayed, it will help small and medium enterprises to manage the cash flow.RBI RBI must look at reducing interest rate, Gopalakrishnan added.
Former Chief Financial Officer of Infosys T V Mohandas Pai said the most important is to how to ensure that vulnerable sections of the society who were losing jobs get some income.
Massive DBT is required, he said.
Business is suffering because of lack of liquidity as everything has come to a standstill. Businesses require increase in working capital, he said.
Thegovernment should be prepared to spend money on medical treatment for people going to hospitals for testing and treatment vis-a-vis infections to the respiratory disease, Pai said.
For vulnerable sections like airports, airlines, restaurants and others, whatever taxes that they have to pay for the next six months should be deferred, he suggested.
Government should give back refunds of all taxes due, Pai said, adding, about Rs one lakh crore is due to people by way of income tax and GST refunds, and the states have to get about Rs 30,000 crore because of shortfall of 14 per cent in guarantee.
Government must give back the money that is due from it. They dont have to borrow money. All other payments by Railways, public sector, banks, NHAI everything should be paid immediately. Whatever is due has to be paid to the people. I think liquidity has to come back, he added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)