India's Congress leader backs cash transfer to poor people

NEW DELHI-- India's main opposition Congress party leader Rahul Gandhi said on Saturday that the government should think about transferring money directly into the bank accounts of people worst affected by the COVID-19 outbreak and lockdown.

Gandhi, while addressing a press conference through a video call, said Indian Prime Minister Narendra Modi should reconsider the $267 billion economic stimulus package announced on Tuesday.

"Our people need money. The prime minister should reconsider this package. Modi should think about direct cash transfer, 200 working days under MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), money for farmers because they are the future of India," Gandhi said.

He expressed "serious reservations" about the government's package for Indian economy, calling it a "package of loans" that did not provide immediate on-ground relief for farmers and migrant workers.

"I don't want to make a political statement but I have a serious reservation about the nature of the package that the government has given. I would like the government to reconsider," he said. "It's not a bad step but the most important thing right now is that we put money directly into the hands of our poor people."

The Congress party leader warned the government of a "catastrophic problem" if it did not put money into their bank accounts.

"The migrant laborer walking on the street needs money, not debt. The farmer who is suffering needs money, not debt," he said. "If we do not, this will become a catastrophic problem."

Last week Nobel laureate Abhijit Banerjee said during a video interaction with Gandhi that India needs a big stimulus package and money should be put in the hands of people to renew demand.

The move, he said, would help revive the Indian economy that at present is hit by the COVID-19 pandemic.

On Saturday India's federal health ministry said the number of COVID-19 cases in the country rose to 85,940, including 2,752 deaths.

A nationwide lockdown imposed on March 25 is underway in India to contain the coronavirus. The move left thousands of migrant laborers stranded at their place of work. The lockdown has badly hit the Indian economy and resulted in the loss of jobs. Thousands of people following the non-availability of work began walking to their homes in distress from big cities in the absence of public transport.

The government this week announced a relief and stimulus package that had some measures for stranded and struggling migrants, including food rations and affordable housing.

Gandhi said unless the government ensured a significant level of demand from consumers across all economic sections, India would struggle to recover from the fallout of the COVID-19 pandemic.

During a televised address on Tuesday, Modi said India would enter into the fourth phase of lockdown with a new set of rules to fight COVID-19 effective from Monday.