The middleclass was the hardest-hit by the Corona epidemic. Whether it's a universal epidemic or a natural disaster, the middleclass is always deprived of Government assistance!
A recent report by the Pew Research Centre in the United States shows that India's middle class is declining. According to the report, the number of middle-class people in India has dropped from about 9.9 crore to about 6.6 crore due to the financial crisis due to the Covid-19 epidemic.
According to the report, those who earn between $ 10 and $ 20 a day (i.e. around Rs 700 to Rs 1,500 in Indian currency) are included in the middle class.
The report also said that the number of middle-income groups in China has dropped by one crore over the past year due to the Corona infection in China.While the number of middleclass people has declined, the debt burden on Indian families has increased. Various study reports show that the Corona epidemic has created employment problems for a large number of people.
While some means of tax evasion have been reduced due to work at home, digital technology, broadband, increased electricity bills have led to a headache for the middle class due to the high cost of digital bills.
One of the main concerns of the country's middleclass over the past year has been the fact that banks have reduced their interest rates on savings plans and fixed deposits (FDs) by nearly 10 per cent; fuel prices have risen by nearly 10 per cent; jobs lost and half-paid.
Their plight has been exacerbated in the Corona era due to the lack of social and economic security for a large number of middle-class people in the country.In India, the middleclass is facing various socioeconomic challenges due to Government’s indifference to them after Corona.
At a time, when the second wave of the Corona is appearing across the country, the night curfew and the lockdown scene have once again raised the concerns of the middle class.
The worries of the middle class people who have lost their livelihoods after the Corona are inflation, children’s education, employment and interest rates on debt.
The Government's neglect of the middle class in such an emergency has increased the suffering of nearly 40 per cent of the population.
In the 2021-22 Budget, the brightest incentive was guaranteed by Finance Minister Nirmala Sitaraman to promote health, education, infrastructure and the stock market, but the middle class will be indirectly affected. The expectations of small income taxpayers and the middle class have not been met in the Budget.
It is clear that the middle class has not received any special benefits under the self-reliant India campaign to deal with the economic situation caused by Corona.
In view of the growing graph of the problems of the middle class for the past year, it seems that the Government needs to ensure special financial incentives for the class.
In this regard, the Goods and Services Tax (GST) needs to be simplified while the current income tax reform needs to be accelerated to get the middle class out of the financial crisis.
Despite good income, many people do not pay income tax. In such cases, the burden of not paying their taxes falls on the honest middle class. The Government should consider financial assistance and incentives for this class on a priority basis.