Congress seeks Rs 1 lakh crore assistance for States in battle against COVID-19

Amid the fight against coronavirus, the Congress party called upon the central government to release pending payments to States under GST and said the RBI should make cheaper loans available to states.

New Delhi:Asserting that the real battle to combat coronavirus is being fought in the States, the Congress on Saturday said that they were facing a shortage of funds and demanded a special economic package of at least Rs 1 lakh crore to help them deal with the crisis created by the disease.

The party also called upon the central government to release pending payments of States under GST and said the RBI should make cheaper loans available to states.

Congress spokesperson Supriya Shrinate said in a statement that states were at the frontline of the battle as the number of COVID-19 cases rise in India.

"We urge the Centre to decentralise and empower the states because one-size-fits-all strategy cannot succeed.

In a dynamic situation, real solutions to combat the disease and economic calamity exist at the local level. The agility of States is the key but States are starved of funds," she said.

The spokesperson said that States do not have the same instruments to mobilise funds as the Union Government even though the real implementation of measures announced is done by them.

"We strongly urge the Central government to announce a special economic package of at least Rs one lakh crore for states to combat the crisis. This can be made available to states on the basis of population and the extent of COVID-19 infections," she said.

Shrinate said that states need money to set up quarantine and testing facilities, install thermal scanners, get ventilators, air purifiers and consumables and procure personal protective equipment for government hospitals.

She said that they also need to take care of the weak and vulnerable who have been impacted by the lockdown.

The Congress spokesperson said that the Centre has delayed payment of GST compensation to states.

"Of Rs 48,000 crore pending in GST compensation only Rs 6,195 crore has been released so far. Due to the halt in economic activity, states are facing the further shortage in GST revenue. Several states including those ruled by BJP have approached the central government seeking clearance of their pending tax dues," she said.

She said that the Centre should "walk the talk" on cooperative federalism as "the real battle is being fought at the state level and we need to enable states to win."

Read:COVID-19 cases rise to 445 in Delhi, Kejriwal says no community transmission

Shrinate said that it is crucial for the RBI to make cheaper loans available to states so that they have funds at their disposal to respond on a real-time basis.

"The additional 30 per cent increase in Way and Means Advances (WMA) for state governments announced by RBI comes at a high-interest rate. This increase in borrowing limit must be made interest free," she said.

She said the central government must play a "proactive role" to resolve issues in inter-state supply chain management.

"State borders are sealed and trucks loaded with essential commodities have been left stranded. This could lead to huge shortages in the coming days. The central government must prescribe the required processes to keep supply chains intact," she said.

The Congress spokesperson said that the government should create a national consensus by putting in place a structured consultative process between the Centre and states while formulating a strategy to deal with COVID-19 and the collateral damage to life and livelihood.

"A similar consensus must also be arrived by involving all political parties in key decision-making at this crucial juncture than just unilateral announcements," she said.

Referring to some of the steps taken by Congress-ruled states, she said that Rajasthan did extensive coronavirus testing in Bhilwara which brought relief to the people. She said mobile vans were also used for the purpose.

Shrinate said that Rajasthan government's decision to defer water and electricity bills for two- months will also bring respite to people.

She said that Chhattisgarh government was testing every person who has returned from abroad and the Punjab government has decided to give two-month pension in advance to about 24 lakh persons.

It is also distributing foodgrains to daily-wage labourers, she added.

(ANI Report)