DAILY NEWS ANALYSIS 01 APRIL
Economy
Government cuts interest rates on NSC, PPF
- The government on March 31, slashed interest rates on small savings schemes, including National Savings Certificate (NSC) and Public Provident Fund (PPF), by up to 1.4% for the first quarter of 2020-21, in line with the moderation in bank deposit rates.
- Interest rates for small savings schemes are notified on a quarterly basis.
About PPF:
- It is a government held small savings scheme, which generally provides high interest rates and is secure.
- An individual can make a minimum investment into a PPF Account of Rs. 500 and a maximum of Rs. 1 lakh per annum, for a term of 15 years. For a PPF account held by an individual, entitles them to a few benefits:
- Small investments can be made by the individual for a long period of time.
- The total sum of the PPF account inclusive of interest is tax free and free from wealth tax as well.
- Rebate in taxes, under section 80C of the Income Tax Act of 1961.
About NSC:
- A savings scheme held by the post office is called a National Savings Certificate (NSC). This is also a government held small savings scheme like the Public Provident Fund, and is the safest and widely available investment option.
- While investing in an NSC an individual can make a minimum investment of Rs. 500 and can have no upper limit on the maximum amount of investment made in a year.
- This type of savings scheme has a lock in period of 5 years and 10 years.
- The NSC Benefits are as follows:
- The individuals can claim for tax exemption under the section 80C of the Income Tax Act 1961, for the first 5 years.
- The NSC can also be pledged against a loan or advance taken from a financial institution.
HEALTH
Tamil Nadu CM writes on how the State is stopping the pandemic in its tracks
Steps have been taken by TN govt. to contain COVID-19 spread
- Screening of all the international passengers who have arrived in the State.
- Closing down of educational institutions and all high-risk areas such as big commercial complexes, malls, theatres, places of worship and so on.
- Closure of the State’s borders.
- Complete ‘lockdown’ and the imposition of Section 144 of the Code Of Criminal Procedure throughout the State till March 31.
Augmenting infrastructure: The houses of high-risk category have been identified and stickers were pasted in front of their residences.
- They are being monitored through audio/video calls made from a dedicated district control room by doctors posted there round the clock.
- They have also been given medical advice and counseling
- State government has in place a detailed ‘Local Containment Plan’ of conducting door-to-door surveillance in the zones where positive cases have been identified.
- Passive surveillance to trace the contacts of positive persons outside the zone is also being undertaken in parallel.
- There are also dedicated COVID-19 hospitals in each district to treat confirmed cases.
- Full support to all frontline workers (doctors, nurses, para-medical staff and sanitary workers) who are working round the clock. A decision has been made to recruit 530 doctors, 1,000 nurses and 1,508 lab technicians to augment the robust medical team already in place.
- Involvement of self-help group members to manufacture triple-layered masks and hand sanitizers to augment supply.
- Highly populated and crowded areas, market places, bus stands, other public places and dwelling areas are being disinfected regularly
- Besides creating awareness on frequent hand washing through advertisements, hand washing and sanitizing platforms have been installed in places of public gathering
Addressing fundamentals: An immediate and comprehensive relief package of ₹3,280 crores has been announced.
- Dry ration for 15 days is being provided in advance to families to meet nutritional requirements. Those under isolation are also provided with nutritious and vitamin-rich food.
- Additional two days wages to cover those rural households, which are dependent on their employment under MGNREGA for their livelihood.
- Around 1.5 lakh pregnant women who are due in the next 60 days are under close monitoring.
- Necessary steps have been taken to provide medicines for the next two months to patients with hypertension, diabetes mellitus, HIV and TB.
- Severe legal action is being taken against violators and those spreading rumors on the spread of the infection and its treatment.
Reference: https://www.thehindu.com/opinion/lead/an-eye-each-on-containment-and-welfare/article31221845.ece
A pandemic in an unequal India
- What steps have been taken by govt. for informal workers, poors and migrants classes?
- The Union government has announced a package, including additional 5 kg grain a month for the next three months under the PDS;
- ₹500 per month for the next three months for women holding Jan Dhan Yojana accounts;
- 3 months’ pension in advance to nearly three crores widows, senior citizens and the differently-abled; and ₹2,000 more for MGNREGA workers.
- What more must be done?
- For two months, every household in the informal economy, rural and urban, should be given the equivalent of 25 days’ minimum wages a month until the lockdown continues, and for two months beyond this.
- Pensions must be doubled and home delivered in cash.
- Free water tankers supplying water in slum shanties throughout the working days.
- Governments must double PDS entitlements, which include protein-rich pulses, and distribute these free at doorsteps.
- In addition, for homeless children and adults, and single migrants, it is urgent to supply cooked food to all who seek it, and to deliver packed food to the aged and the disabled in their homes using the services of community youth volunteers.
- To ensure jails are safer, all prison under-trial prisoners, except those charged with the gravest crimes, should be released.
- India must immediately commit 3% of its GDP for public spending on health services
- India must ensure that messaging and reporting on COVID 19 does not stigmatize foreigners.
Reference: https://www.thehindu.com/opinion/op-ed/a-pandemic-in-an-unequal-india/article31221919.ece
The cost of a cure for COVID-19
- The World Health Organization declared the COVID19 outbreak a pandemic. However, the U.S. Food and Drug Administration (FDA) declared COVID19 an orphan disease, or a rare disease.
- In the U.S., under the Orphan Drug Act, 1983, companies are provided incentives to develop therapies, or orphan drugs for rare diseases. The idea is that without these incentives, companies would find it difficult to recoup their R&D costs given the small number of people suffering from the rare disease. The Act allows seven years of market exclusivity and financial incentives to innovators of these drugs. As a result, orphan drugs are often exorbitantly priced.
- Impact of this move on the U.S. and India
- Indian law permits the government to issue a compulsory licence in certain circumstances of a public health crisis under Section 92 of the Patents Act.
- This would allow third parties to manufacture a patented drug without permission of the patent holder.
- If the government does not exercise its powers to issue a compulsory license if required, Indian manufacturers would not be able to manufacture generics (without challenging the patent).
Reference: https://www.thehindu.com/opinion/op-ed/the-cost-of-a-cure-for-covid-19/article31221972.ece
Hydroxychloroquine combination allowed
- The Union Health Ministry has allowed the use of Hydroxychloroquine in combination with Azithromycin under close monitoring for patients with severe disease and requiring ICU management as per the revised Guidelines on Clinical Management of COVID–19.
- It has, however, cautioned that the medication is presently not recommended for children less than 12 years, pregnant and lactating women.
About Hydroxychloroquine:
Hydroxychloroquine is in a class of drugs called antimalarials. It is used to prevent and treat acute attacks of malaria.
Ministry, Scientific Adviser differ on mask use
- India’s highest science advisory body, the office of the Principal (PSA), and the Union Health Ministry appear out of sync on whether masks should be widely used by people.
- The Ministry’s standing recommendation is that not everybody should be wearing masks.
- Among those who are not healthcare workers, only those who had a cough or exhibited signs of a flu or a respiratory illness need to be wearing them as did those caring for COVID19 patients.
- The reason this is not recommended for the public at large is that it will lead to a shortage and unavailability for doctors, nurses and other hospital staff.
- Other than the question of shortage, the scientific consensus was that COVID19 was not an airborne disease and most people contracted it through coming into contact with infectious droplets picked up from surfaces.
- However, office of the PSA through the PIB has recommended the widespread use of masks. It endorsed, above all, homemade masks that could easily be made and were reusable with washing and sanitizing.
- About PSA
- The office of the PSA is a key coordinating agency among government scientific bodies and industry to accelerate decisions on dealing with COVID19. It does not recommend the use of the health mask or the N95 mask that is expensive, not reusable and largely used in hospital settings.
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