Large corporations saved Rs 1,45,000 crore with this tax cut. These industry giants have not passed on the benefits. They did not create factories or new jobs, they did not increase the wages of employees, nor did they reduce the price of goods for consumers. Hundreds of big companies have benefited and decided to keep the money for themselves.
Four months after the announcement of the tax cuts, the coronavirus has taken hold of the world. In March, Prime Minister Modi ordered a sudden full lockdown across the country to contain the spread of the coronavirus.
But as everyday life came to a halt with the lockdown, cases of COVID continued to rise. Today millions of people are unemployed and without income. About 6 crores of small businesses were closed.
How to restart your life and open the economy?
This would have given them the security and confidence to survive in these uncertain times. Giving people money would have helped jumpstart the economy as a whole. Each family would slowly use up these 7,500 rupees for 2-3 months. Stores would gradually open and people would use that money for basic shopping.
This would help revive the economy and create jobs, thereby stimulating the economy.
It would have cost the government less than Rs 1 lakh crores, which is less than the overall money it has decided to forgo by giving big companies a corporate tax break that has not been passed on to the people.
Every country in the world has provided direct cash assistance to people in difficult times. Why is the Modi government unwilling to help our citizens?
(The author is the chairman of the Congress Data Analysis. The views expressed are the authoris clean, The Quint neither endorses nor is responsible for them.)