In the backdrop of Covid_19 pandemic it is difficult for the States to maintain the economic balance. Here are a few suggestions that could be considered by the Central Government : Sharad Pawar

Sharad Pawar, @PawarSpeaks, President of Nationalist Congress Party

  • RBI has implemented new deferment policy regarding the loan repayment in the background of #Covid_19 #lockdown. This should be made applicable to State Debt as well. The central government should defer payment of instalments to RBI on State Debt at least for six months.
  • Most of the Natioalised Banks have flushed off more than 10 Lakh Crore of funds to corporates in the last five years. In the situation of Covid-19 Pandemic these Nationalised Banks should extend interest free advances to the State Government.
  • More than 1.3 Lakh tonnes of wheat purchased by FCI last year is still not lifted from the godowns in Punjab. Since this year’s wheat harvest is on & there is a problem of storage, Govt of India should channelise the yield to the poor, needy & migrant labourers in the States.
  • The state govts are seeking relaxation in state fiscal deficit limit to deal with the additional expenditure & revenue fall. Under the FRBM act, states are mandated to keep their fiscal deficit under 3% of GSDP. States have sought relaxation in their limit by as much as 4%.
  • The CM’s Relief Fund, has always been kept out of the #CSR provision. Corporates’ contributions to CM’s Relief Fund should be considered as CSR. All State Disaster Management Authorities will be empowered to deal with Covid related crisis in various quarters if it is done so.

Leave a Reply