News ID : 49244
Publish Date : 5/6/2020 11:32:03 PM
Take a look at the government's efforts to reduce the consequences of the Corona spread on the economy

NOURNEWS checked

Take a look at the government's efforts to reduce the consequences of the Corona spread on the economy

With an overview of the government's planning process and policies to compensate for the economic damage caused by the corona in the country, it can be said that although efforts have been made to achieve maximum justice in this area, the result is not good enough and requires expertise and it is more accurate

NOURNEWS- With the outbreak of the coronavirus, special conditions were created in the world, and the need to establish restrictions to reduce the prevalence of the disease led to economic and social consequences in the world.

In Iran, these consequences took a different turn due to the sanctions imposed on Iran. Among the problems in this situation are the unemployment of a large number of people in the society, the closure of economic centers and large and small enterprises, and as a result, the reduction of purchasing power in the society.

Under these special circumstances and despite the sanctions, the need for government planning and smart action to provide support packages during the Corona days to reduce the various economic and social consequences for vulnerable people in society was felt more than ever.

Government support for community members came at a time when the government was forced to adopt strict occupational and social policies to prevent the outbreak of coronavirus and to reduce the direct and indirect effects of the disease.

These policies include the closure and quarantine of cities, the establishment of strict policies on urban and intercity traffic, as well as social distance and housing.

The combination of these decisions had a relatively strong impact on the economic conditions and lifestyles of the people of the society, to the point that the government thought of designing support packages for the people of the society.

The first issue the government focused on was creating economic facilities to reduce the economic consequences of job closures to prevent jobs from falling.

Based on economic priorities, these decisions were considered in three stages: immediate, medium-term and long-term. What was important in these decisions was to reduce government spending while providing better and more accurate facilities to improve the economic situation caused by the outbreak of the coronavirus.

In the meantime, what needs to be considered is the success rate of these policies and how they are implemented.

The first news about the granting of the Corona support package was announced on March 13 by the Minister of Welfare. Shariatmadari wrote in a Twitter message that with the important order of the president and the support of the program organization, all those who do not have a special job with a steady income will be paid a support subsidy in March. These low-income people are identified or registered with the help of the Iranian Database.

According to the Program and Budget Organization, the allocation of two packages for the low-income groups, including a monthly allowance of 200,000 to 600,000 Tomans for 3 million Iranians without a fixed income and a one to two million 4% loan without a guarantor, for 4 million injured workers such as workers and guilds. In addition, about 100,000 retired villagers covered by the Nomadic and Rural Insurance Fund were eligible to pay their support baskets, which were to be credited to their livelihoods.

Identification and approval of the insured persons covered by the government support package was done by the Social Security Organization and provided to the Ministry of Cooperatives, Labor and Social Welfare, so that after the approval of the Targeted Subsidies Organization, the support package will be deposited in the head of the household.

What was initially suggested was that the support package mentioned was cash and would be credited to the head of the household. The amount of this package is not fixed and depends on the size of the family; single-family households, one hundred thousand tomans, two-person households, 150 thousand tomans, three-person households, 200 thousand tomans, four-person households, 250 thousand tomans and five-person households with more than 300 They receive a thousand tomans.

Another support provided by the government during this period was the postponement of repayment of bank loans. According to a member of the central bank's board of directors, the real beneficiaries of the three-month installment payment are only those who have received a good loan, and other facilities in the form of other contracts will not be included. In this way, recipients of car, housing, purchase of goods, etc. facilities must pay their facilities according to the previous procedure.

In his speech at the April 17 meeting, the President praised the government's policies on providing health services, as well as providing the health needs of the community and meeting the daily needs of stores without disrupting the supply and distribution of government efforts. He promised to put policies to reduce harm to various jobs on the government's agenda.

What do the experts say?

After depositing the support packages, the experts analyzed this issue.

Analyzing the government's plan to provide the same livelihood basket to the needy, economist Bayazid Mardukhi said: "This is a political gesture, like a master giving all his subjects a gift." The government certainly knows that the number of family members varies, and if it does not, it is probably because of the ease of payment.

In this regard, Mohammad Taghi Fayazi, an economic expert, also criticized the government's plan, saying: "The most important drawback of this plan is the undue discrimination in which it lies." Cash subsidies are credited to the head of the household in the number of household members, but this amount is equally credited to the account of all household heads. This discrimination is to the detriment of households with a larger population.

Referring to the amount provided in the support package, Sabbaghian, a member of the 10th parliament, said: "While the prices of some goods, especially consumer goods and necessities such as meat, chicken and other basic goods, have increased by 100%, the amount How can a small 100 or 200 thousand tomans, which is provided by the government in the form of support packages, be a problem solver ?!

Pourabrahimi, head of the parliament's economic commission, said: "In the meeting we had with government representatives, it was announced that the package would be distributed among the families in two stages, but in practice we saw that none of the government's commitments were fulfilled." Today, the parliament strongly criticizes the distribution of government support packages. Poorabrahimi said: "The government says that it distributes and distributes this package among people with social security insurance who have salaries below 3 million tomans per month, but there are still a large number of citizens who do not have any insurance services and are not employed." it is not clear.

Looking at these comments, it can be concluded that despite the government's efforts to provide a fair distribution of support assistance, a significant part of society has been deprived of it. These groups deprived of support include Colburn, day laborers, and tourist centers and large businesses.

Another important point is the damage to large workshops and factories, which not only forced the closure of production centers due to the outbreak of corona, but also forced to pay the costs associated with workers without a role in production. And having to move the factory has imposed costs on the employer, and this has led to a significant increase in power adjustment in production facilities and centers. In fact, the damage done to this group is as big as the role they play in turning the wheels of the economy.

The government's support package for large businesses is divided into two groups. The first group includes economic enterprises and government-mandated activities that include activities such as hotels, restaurants, and sports clubs. The amount of facilities to this group is 16 million Tomans per worker and 50% of it must be allocated to pay wages.

The second group of economic enterprises involved in this project are activities that have been seriously damaged not by the government but by the corona crisis of their business, such as manufacturers and sellers of clothes, bags and shoes, including economic activities. These companies receive 12 million tomans in facilities for each worker and are required to spend 70% of these facilities on paying the workers' wages and spend the rest for other expenses of the enterprise.

The donations are in the form of a 12% loan and will be provided to businesses by a two-year repayment period.

One of the drawbacks of the government's decision in this regard is, for example, in the discussion of tourism, which is due to the fact that most of the tourism burden is borne by ecotourism centers, which are often run in small numbers or as a family. It will not be necessary.

With an overview of the government's planning process and policies to compensate for the economic losses caused by the corona in the country, it can be said that although efforts have been made to establish maximum justice in this field, the result is not good enough and requires expertise. It is more accurate.

 It is unclear how long it will take for the virus to take root in the economy, and whether it will be possible to repay the loan at the time set by the firms. It seems necessary for the government to move toward long-term plans. Is.

What can be considered to revive economic conditions in different centers, especially large enterprises, is to distance oneself from paying attention to facilities and planning, such as providing tax incentives, reducing or eliminating taxes, and considering subsidies and trying to reduce the costs of economic enterprises. This requires closer scrutiny by the government.


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