The preliminary study focuses on the economic impacts of each sector separately. Last week, Chief Minister Pinarayi Vijayan released an estimate of the loss.
It is not possible to mitigate or reverse the impact by recovering from the loss found in the assessment from the first phase of the lockdown.
Many states are in a financial position where they cannot even pay their employees. The state of Kerala is also in critical condition. The measures taken by the central government to overcome the crisis are inadequate. In this scenario, the study institutes caution against the economic emergency.
The website of the Gulati Institute of Finance and Taxation demands that instead of raising taxes, the central government should be willing to lend to the states by borrowing from the Reserve Bank. The seminar said that there is already an unexpected state of emergency.
The total loss of self-employed and casual workers in the state during the period of the closure was Rs 14,000 crore. According to preliminary estimates, the hotel and restaurant sectors lost Rs 6,000 crore and Rs 14,000 crore, respectively.
Total earnings from tourism fell. The impact is expected to continue until September. An estimated loss of Rs. The tourism sector collapsed when profits were being made from the downturn caused by the two floods. Thousands of people, including promoters, lost their jobs. The state is also hit by the revenue loss from tourism.