Corona Virus: GoI halts three crucial policies as revenues shrink

As the outbreak of corona virus has hit revenue collection, the Government of India has dropped three crucial policies.

Highlights

The revenue collection for the fiscal year 2019-20 has contracted by 3.5% in the first 11 months. With the increasing threat of Corona Virus, it is expected that the revenue collection is to get reduced further. Therefore, the GOI has halted three crucial policies.

The policies are all the proposals of food ministry.

Policies Halted

The food ministry had earlier proposed taxes on imported crude and refined vegetable oil from Malayasia. This includes palm oil as well. The proposal was the reduce the taxes by 3%-7% in order to keep the domestic prices under control. This was shelved by the Food Ministry

The Food Ministry had also proposed supply subsidized rice and wheat to millions of people. It also suggested increasing the supply of rice and wheat to 7 kg per month. Currently, 5 kg per month is supplied under public distribution system.

The Food Ministry also proposed to provide vitamin-fortified rice that involved an expenditure of 5 trillion rupees.

The above three policies that were earlier considered by GOI are now been halted due to the increasing threat of Corona Virus.

Month: Current Affairs - March, 2020