COVID-19's relief package has gaping holes

Prime Minister Narendra Modi announced a 21-day lockdown in a bid to prevent the spread of the Coronavirus for India's 1.3 billion people. With just 4 hours' notice, the government instructed everyone to remain in their homes, banned public events, closed schools and institutions and shut commercial outlets across the country.

However, the move to prevent community transmission is having an enormous impact on those most in need in India - the hundreds of millions who live in poverty. 

The federal government had announced direct cash transfers to poorer households, mainly through existing government schemes. The Finance Minister of India, Nirmala Sitharaman announced a relief package, a step in the right direction. However, there are a gaping holes in it. 

For instance, the relief package builds on food grains and cash transfers. Food grain rations would be doubled for an initial 3 month period with an addition of pulses to the PDS. However, there are many poor who are still excluded from the PDS. The GoI is still using 2011 population figures to calculate state-wise PDS coverage. Secondly, the PDS has been found to be corrupt owing to poor coordination, low administrative accountability, and diversion of PDS supplies from the system.

Cash-transfer amounts are very small. The PMGKP allocation of INR 31,000 Cr for transfers to Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts covers a monthly allowance of INR 500 for approximately 20 Cr recipients for an initial 3 month period. It is impossible for an average size family (of four) to survive on INR 500 for a month.

Whether it is food or cash - the disbursement process and system will be a huge challenge. With everyday proving to be a living challenge for the poor, how far has the GoI gone to ensure that ration and cash has reached the people?