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Centre should introduce new schemes like ‘food for work’ amid Covid-19 crisis: Rajasthan CM
On the ongoing lockdown, Gehlot emphasised on taking a collective decision by looking at the situation of the individual states and taking the respective states in confidence.
Rajasthan Chief Minister Ashok Gehlot has urged PM Narendra Modi to introduce new schemes such as ‘food for work’, announce a big package for industries and relaxation in central GST amid the coronavirus crisis.
On the ongoing lockdown, Gehlot emphasised on taking a collective decision by looking at the situation of the individual states and taking the respective states in confidence.
Gehlot urged to immediately plan to launch a scheme on the lines of ‘Food for Work’ to provide relief to the ragpickers, pushcart or rickshaw-pullers, nomad and other helpless people whose livelihoods are under threat due to the Covid-19 lockdown. He said the scheme was initiated during the regime of Atal Bihari Vajpayee in 2001-02 and gained much popularity as a measure of fighting drought.
The Chief Minister added that the state government compensated such vulnerable population by providing a cash amount of Rs 2,500 each to more than 31 lakh families who were not covered under any other social security scheme. The centre should also bring some scheme of compensation for such people so that they could get at least some minimum economic support, he said.
The Government of India has sufficient quantities of grains for such a scheme, said Gehlot, attending the PM’s video conference which was participated by the CMs of other states on Saturday. “For deciding the financial package to the states, a delegation of top officers could be sent for a discussion with the Union Finance Ministry and the Reserve Bank of India (RBI),” Gehlot said.
Suggesting an incentive package for the Industries, he said former Finance Minister Pranab Mukherjee had announced a big stimulus package during the 2008 economic slump. Such a package should be announced for the industries during the current crisis so that their financial situation could be strengthened.
“The state government has provided relief to the hotel and tourism industry affected by the lockdown. We have decided to reimburse the state GST to the hospitality businesses for the next three months. To arrest the deteriorating situation of this industry during this challenging time, the GoI should consider giving concessions in the central GST,” Gehlot stated.
He suggested that there will be a recovery at the global economic scenario after the lockdown ends and in such a situation, looking at the possibilities of new export opportunities for India, from now onwards giving interest subsidy through EXIM Bank and other incentives should be considered to encourage exports.
The CM reiterated his demand to provide a grant of Rs one lakh crore to the state governments to deal with the Covid-19 pandemic. The payment of the first instalment of the grant should be made, based on the population and later as per the prescribed formula of the GST Council or the Inter-state Council, he added.
He further asked for an increase in the borrowing limit for a state and the treasury deficit limit mentioned in the FRBM Act to 5% of the GDP. Gehlot demanded that recently the RBI increased the Wage and Means Advance limit by 30%, but looking at the current crisis, the facility of this advance payment to the state governments should be provided free of interest so that the Covid-19 pandemic could be effectively dealt with.
Gehlot demanded for grant of a moratorium of 6 months to the states by reassessing the payment of forthcoming instalments of outstanding loans due to the RBI and other financial institutions under the Government of India.
Gehlot said that the crops of Rabi season were ready to be sold in the market. Under the Prime Minister Asha Scheme, 25% of the total yields of crops are procured at the MSP, which is inadequate. Farmers should be provided relief in such a tough time by increasing the purchase limit on MSP to 50%. The FCI and NAFED etc should urgently start the MSP procurement of crops in a phased manner, the chief minister suggested.
