Marginalised people have been affected the most by the Covid pandemic. A large segment of this list includes women, small ethnic groups and farmers. Various studies have shown that a large number of people have fallen below the poverty line anew due to the effects of the pandemic. Experts have demanded an increase in the budget allocation for the marginalised and backward communities. The pandemic has created two types of poverty – those who were already poor have become poorer and those who were previously out of poverty have fallen below the poverty line anew due to declining incomes. People’s income has also decreased.
In order to revive the productive sector, the consumption of the people must be maintained. And that’s why it is important to increase the flow of cash into people’s hands, a policy that many countries have succeeded by following.
The global health crisis has reduced people’s income and consumption. Unemployment, malnutrition, school dropouts and social unrest have increased. In this situation, the government will have to increase its expenditure to bring the underprivileged people back to normalcy. Three types of measures can be taken in the budget to address the loss during this crisis. Some of these steps need to be taken immediately based on the necessity. Apart from this, there should be short- and long-term sectoral measures. Allocations to the sectors affected by the Covid pandemic must be increased. Not only do we have to allocate, but we also have to increase utilisation of the fund. It is also important to have proper guidelines in that regard. There should also be a strict monitoring system in place.
Amid a changed context due to the pandemic, the importance of the budget for the poor and marginalised people is more than that in normal times. Every year, there is a large allocation for the social safety sector in the budget for poverty alleviation. But a lot of this allocation is wasted. To prevent this waste, the coverage of social safety net can be further expanded. In order to save lives, some money has to be delivered directly to the marginalised people.
Demands can be increased in two ways. First, some money can be delivered directly to people, especially the marginalised. Consumers will increase the demand for the product by spending the money directly. Second, government investments must increase. Increasing investments will not only increase the demand for goods in the country but also improve the country’s infrastructure. As a result, private investments may also increase slightly.
Although the government incentive package is claimed to be for everyone, the media have also come to know that many poor people on the plains or in the mountains, marginalised or mainstream have not received this assistance. With the lockdown in effect and the ongoing economic crisis, the poor have become poorer and many who overcame poverty have become newly poor and more dependent on the government. The condition of the marginalised people, especially those in the hills and plains, is more shocking.
Under these circumstances, it is necessary to reconsider the government’s strategy for the welfare of the poor during the pandemic. The average income of small ethnic groups is lower than the national average. Two-thirds of the small ethnic groups in the plains are virtually landless. There is no such thing as land rights for the hill tribes. So, separate incentive packages and rations can be arranged for them. The government should start new financial incentives and food aid projects for marginalised people and ensure that the aid reaches them.
The budget for upcoming fiscal year should also plan for specific and increased allocations for social safety activities. Experts have suggested a medium-term national plan with local administrations and NGOs to address the situation. The issues should be seriously considered in implementation of the budget for fiscal year 2021-22.
