COVID-19 law

Mains- GS-2 Governance

1. The nationwide lockdown has been central to the government’s strategy to combat the COVID-19 pandemic.

2. The lockdown exercise has caused unprecedented economic losses to the organized sector.

3. In the unorganized sector, there has been a complete breakdown with little or no legal recourse for those affected.

4. The lockdown has helped contain community spread of the disease, but a legal and legislative audit of this exercise has evaded scrutiny.

Present laws

1. NDMA 2005

a. The lockdown has been carried out by State governments and district authorities on the directions of the Union Ministry of Home Affairs under the Disaster Management Act of 2005.

b. Invoking Disaster Management Act has allowed the Union government to communicate seamlessly with the States.

c. This was intended to provide for the effective management of disasters and for other related matters.

d. Under the Act, the National Disaster Management Authority (NDMA) was set up under the leadership of the Prime Minister, and the National Executive Committee (NEA) chaired by the Home Secretary.

e. The NDMA and NEA directed the Union Ministries, State governments and authorities to take effective measures to prevent the spread of COVID-19, and laid out guidelines on the functioning of services and establishments during the lockdown.

2. Epidemic Diseases Act 1897

The State governments and authorities exercised powers under the Epidemic Diseases Act of 1897 to issue further directions.

Challenges

1. The NDMA Act was not originally intended to address the threat of a pandemic.

2. The Epidemic Diseases Act reveals lack of requisite diligence and responsiveness of government authorities in providing novel and innovative policy solutions to address a 21st-century problem.

3. Any violation of the orders passed would be prosecutable under Section 188 of the Indian Penal Code. This is a very ineffective and broad provision dealing with disobedience of an order issued by a public servant.

4. Proceedings under Section 188 can only be initiated by private complaint and not through a First Information Report.

5. Offences arising out of these guidelines and orders have a weak basis in terms of criminal jurisdiction thereby weakening the objectives of the lockdown.

UK and Singapore’s New Law

1. The U.K. enacted the Coronavirus Act, 2020, comprehensive legislation dealing with all issues like emergency registration of healthcare professionals to financial assistance to industries.

2. Singapore passed the Infectious Diseases Regulations, 2020, providing for the issuance of stay orders that can send ‘at-risk individuals’ to a government-specified accommodation facility.

3. Both of these laws set out unambiguous conditions and legally binding obligations.

Way forward

1. The Union government should consider promulgating ordinances.

2. These circumstances call out for legislative leadership, to assist and empower States to overcome COVID-19 and to revive their economic, education and public health sectors

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FRBM Act

Mains-GS3-Economic Development, Mains-GS2-Governance

1. Kerala has demanded the Central Government for flexibility under the Fiscal Responsibility and Budget Management (FRBM) Act.

2. The demand is to ensure that the State’s finances are not adversely impacted in this financial year.

What is the FRBM Act?

1. The act was enacted in 2003 to make the Central government responsible for ensuring

a) Inter-generational equity in fiscal management

b) Long-term macro-economic stability.

2. It envisages the setting of limits on the Central government’s debt and deficits.

3. It mandates greater transparency in fiscal operations of the Central government and the conduct of fiscal policy in a medium-term framework.

4. It specifies the annual revenue and fiscal deficit goals over a three-year period.

a) Reduction in the fiscal deficit to 3% of GDP within a specified time frame. It has shifted from the initial goal of March 31, 2009, to March 31, 2021.

b) The 12th Finance Commission’s recommendations in 2004 linked debt relief to States with their enactment of similar laws to ensure that the States are financially prudent.

5. The States have enacted their own respective Financial Responsibility Legislation that sets the same 3% of Gross State Domestic Product (GSDP) cap on their annual budget deficit.

How does FRBM relaxation work?

1. It contains an ‘escape clause’ for providing flexibility under some emergencies.

2. Under Section 4(2) of the Act, the Centre can exceed the annual fiscal deficit target citing grounds such as

a) National security

b) War

c) National calamity

d) Collapse of agriculture

e) Structural reforms

f) The decline in real output growth of a quarter by at least 3% points below the average of the previous four quarters.

Why should the targets be relaxed?

1. The COVID 19 pandemic along with lockdown can be considered as a national calamity.

2. It has led to a period of inactivity in the country as well as losses in the economy.

3. So, suspending both the Centre’s and States’ fiscal deficit targets is needed.

4. It can allow both the Union government and States to increase expenditure to meet the extraordinary circumstances.

When has it been relaxed?

1. There have been several instances of the FRBM goals being reset.

2. The most significant FRBM deviation happened in 2008-09 in the wake of the global financial crisis.

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