How are you?

Another two weeks have gone by so quickly. During this time, I have been getting feedback and calls asking that we replicate cash transfers and other palliative measures that some States are taking to provide immediate relief for their people at this time. So, in this newsletter I will talk about some of the actions we have been taking and will continue to take and clarify why we have chosen these strategies.

First, let me state that stop-gap measures are good only when they feed into a long-term strategy. On their own, they are a waste of resources and a conduit for corruption. So, a major criterion for all our actions is that they must be sustainable.  

Second, our actions must be based on data, science and logic. For example, we can extend the wage award for civil servants and pensioners because our data shows that regular payment of salaries stimulates our economy.

More recently, we met with our farmers and took a decision based on the data they made available to us. Inflation has led to the doubling of prices they pay for hiring tractors. It was logical to provide a 50% subsidy which would be claimed by owners of the tractors who have provided the service to biometrically captured farmers. This serves two purposes. First, the State is providing matching grants. So first, the farmers must have the other 50% which they will pay to the tractor owners. So, only real farmers benefit from this subsidy. Second, by this, we are encouraging investment in farm mechanisation across all the zones.