As somebody said during these times, first survival then revival. Firstly we have to accept things have gone haywire. Of course a lot of us and in general the human race carries a sense of optimism that this will soon be over but when one is inside a war, one cannot celebrate the outcome of the war. The economy is in doldrums and is falling at unprecedented speed. The MSME sector is the one who have been largely affected as there is no business, since there is no business, there is no income and the op-ex is still mounting in spite of no positive cash-flow. The government has taken some measures to defer the payment IT returns and GST but it is only deference. One will still have to pay it sooner or later or this will again attract penalty. Most people in this country will die of economic starvation.
Here are a few things that the Indian Government can do:
1. Waive off tax for the entire year.
2. Refund advance taxes paid by companies.
3. Collect tax from only cash flow positive organizations and give it to cash strapped MSME’s.
4. Reduce Repo rates for banks so they can extend lower rates for loans.
5. Increase tax on liquor country wide (It is only been done for Delhi as of now)
6. Give out bills for people to have a 4 day work week instead of 5 in the private sector.
We should take examples from America and Germany to immediately undertake economic relief packages to save our developing country or we will be left 20 years behind everyone just when we were just emerging as a superpower.
Indian Government , Wake up!