HYDERABAD: The COVID-19 pandemic is mass destructing both lives and livelihood. Despite countries fighting a common enemy, the extent of human loss and the severity of economic fractures will differ.
Various governments have spread out stimulus buffets, but nations will likely need even more generous helpings until the pandemic passes and recovery begins.
India, too, dashed off its first Rs 1.7 lakh crore save-the-country relief package comprising cash transfers, free gas cylinders and food grains supply for three months covering two-thirds of the population or 800 million, among others. But, is it enough? Perhaps, a peer review of ASEAN and SAARC nations may help understand what’s going on elsewhere.
The Indian subcontinent can’t be strictly compared to any of the 18 member countries because of the sheer size of our population and economy. Still, a sneak peak indicates that our stimulus efforts need more meat on the bones. Other countries, despite strained finances and relatively being smaller economies, measured up to India. Some others did even better.
While export-dependent Vietnam deferred rentals and payments to pension pots for five months, Thailand lowered water and electricity bills, besides cash transfers to 9 million workers outside the social security system. For those within the social security net, it lowered contribution of employees and employers.
Singapore scrapped property taxes, waived student loan interest for one year plus cash giveaways to self-employed.
Malaysia, which consistently runs fiscal deficits since the Asian financial crisis in 1997, went all guns blazing with its largest-ever aid aggregating one-fifth of the GDP. What’s on offer? Almost everything from free internet to electricity bill discounts to temporary paid leave to special allowances for healthcare workers. And guess for how long? Not three months, not five months, but until the pandemic ends for good.
The Philippines is giving 0% interest loans to small farmers and fisherfolk besides financial aid to 18 million vulnerable households, while the $1-trillion Indonesian economy vowed to give stipends for even job seekers.
Smaller nations like Laos rolled out a 13-point economic stimulus package including lower electricity tariffs and tax reliefs to industry.
Others like Brunei offered fiscal assistance including flexible financing for real estate and restructuring of credit card loan dues.
The tiny nation Nepal took it upon itself lowering electricity charges besides urging private schools and internet service providers to extend freebies to customers.
Neighbouring Bangladesh with reliance on textile exports extended its stimulus package to 4 million textile workers among others.
India did well to some extent with the government volunteering to pay both employees and employers’ contribution towards EPF. However, but that generosity is limited to companies employing less than 100.
India Inc is worried as the Centre is yet to mount a rescue effort for industry. Other than RBI’s interest payment deferrals on working capital loans, relief measures are largely limited to households.
