Other States

Coronavirus lockdown | Maharashtra seeks ₹10,000 crore for 5 months

Ajit Pawar  

Deputy Chief Minister and Finance Minister Ajit Pawar on Friday sent an SOS to Prime Minister Narendra Modi urging the Centre to rescue Maharashtra from an economic mess as a result of the lockdown following the novel coronavirus (COVID-19) outbreak.

 

The Centre should provide an economic subsidy of ₹10,000 crore each for the next five months, increase the cap on fiscal deficit under the fiscal responsibility and budget management Act to 5%, and clear the pending compensation on account of the goods and services tax (GST) to the tune of ₹15,558 crore, Mr. Pawar wrote to the PM.

 

“Maharashtra is putting up a good fight against the virus on all fronts and will surely win it, but for it to be successful, the Centre must cooperate with it on the economic front,” the letter said.

Mr. Pawar also assured the PM of the industrial, commercial and financial capacity and capabilities of the State. “Maharashtra has the power to overcome the COVID-19 crisis on its own but due to the lockdown announced by the Central government from March 24 to May 3, the economy of the State is stagnated. Maharashtra’s reported GST income is down by ₹27,000 crore in March.”

 

He said, “The Central government should release the GST dues coming to the States, allocate the next instalment of the GST in a timely manner, and while keeping in mind the expected deficit in the State income, give subsidy for the next five months.”

The Finance Minister said the State government spends ₹10,000 crore a month on employees’ salaries, ₹3,000 crore on pension, ₹7,000 crore on loan interest, and ₹3,000 crore on social schemes. “Much of this is now being allocated to fight the coronavirus. At the same time, development projects need to be continued, and without help from the Centre, it would be difficult for the State to carry out these major responsibilities.”

The letter also said, “Maharashtra has always followed financial rules, laws and discipline, and will continue to do so. But this is the time the Centre came forward to cooperate with the State in a stronger manner.”


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Printable version | Aug 5, 2021 5:12:51 PM | https://www.thehindu.com/news/national/other-states/coronavirus-lockdown-maharashtra-seeks-10000-crore-for-5-months/article31370311.ece

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