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Resource centre on India's rural distress
 
 

Budget 2021 Is a Chance to Undo the COVID-Induced Inequality That Has Surged Across India -Nikhil Dey

-TheWire.in

Ideally, the government should increase the work entitlement for MGNREGA to at least 150 days, double the budget and put in place an urban employment guarantee act.

Let’s start with those who did well over the last 10 months. The Sensex index crossed the 50,000 benchmark for the first time on January 21, 2021, with a whopping 70% increase since April 2020.

The Oxfam inequality report, just released, gives an idea of how the economy has functioned, for whom, and where our policy interventions have left us. The wealth of Indian billionaires increased by a massive 35% in the last 10 months. The Oxfam report states that just the increase in wealth of the top 100 billionaires could sustain the MGNREGA for ten years.

This is at the same time that we have faced an extreme recession – with the first quarter in 2020 measuring a 23.9 % degrowth, unknown in the history of independent India.

Let’s look at who suffered. The same Oxfam report says that 1,70,000 people lost their jobs every hour in April 2020. Innumerable studies have pointed to the shrinking workforce and the rising rates of unemployment, even while there are some signs of recovery in growth rates (CMIE), the highest levels of food insecurity and starvation known in recent times (Hunger Watch), distress migration and reverse migration, the casualisation of jobs, the workforce shrinking by over 13% for women (Nikore FLFP study) during the pandemic; children out of schools, and children beginning to go to work. Everything seems to have gone wrong with the economy, and working people have suffered deep distress.

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