Guj forms panel to suggest steps for economic revival
Gujarat chief minister Vijay Rupani on Wednesday constituted a committee to suggest measures for economic revival, including fiscal restructuring, a day after Prime
Gujarat chief minister Vijay Rupani on Wednesday constituted a committee to suggest measures for economic revival, including fiscal restructuring, a day after Prime Minister Narendra Modi announced a ₹20 lakh crore stimulus package. It will also suggest ways to run the state’s economy with fewer migrant workers.
The six-member committee will be headed by former Union finance secretary Hasmukh Adhia, and will have economy experts representing various sectors, said Ashwini Kumar, secretary to the CM.
Kumar said that the Covid-19 pandemic has affected the state and its economy to a large extent. “The demand and supply chain has been crippled and, the informal sector and the MSMEs have taken a major blow,” Kumar said.
“Gujarat has a large migrant workforce. However, the pandemic has compelled them to return to their respective home states. The disruption caused by Covid-19 has affected an industrially developed state like Gujarat, which has, in turn, affected the nation too,” he said.
The committee will submit a comprehensive action plan within a month and an interim report within two weeks.
“The committee will assess sectoral and sub-sectoral losses and suggest necessary measures for its revival. The committee will also review the fiscal status and budgetary position of Gujarat and provide suitable suggestions for its improvement. This will include revising and revision of fiscal deficit estimate and the current tax administration in the post Covid-19 scenario,” Kumar said.
In the short term, the committee will also examine the decreased availability of workers and recommend ways to make the industry more viable with fewer workers. For the longer term, the committee will devise a strategy to attract foreign companies, which plan to relocate their base from other countries, especially China. It will also provide a comprehensive action plan (immediate, medium-term and long term) for economic and fiscal revival, he said.
On Wednesday, the Gujarat Cabinet met to discuss ways to take maximum benefit from the Centre’s relief package. “Discussions were also held at the state cabinet meeting on deciding the strategy for implementation of the package in the state,” read an official statement from the chief minister’s office.
Officials said that the cabinet also discussed Lockdown 4.0 and decided that new relaxations would be allowed for two weeks, after which its impact will be reviewed.
“We will test how people react to the relaxations and its impact on Covid cases,” a senior government official said, adding that the district officials have been asked to strictly monitor the impact of Lockdown 4.0.
“The Lockdown 4.0 may witness the opening of shops and private office on a rotational basis. Rules for rickshaws, taxis, city buses and other transport would be decided soon. Also, multiplexes, malls, gyms and clubs will remain closed during lockdown to stop the rapid transition of the virus,” the official said.
However, the state will notify its guidelines only after the Centre’s broad guidelines are issued.
Meanwhile, principal secretary (health) Jayanti Ravi said that on Wednesday, 364 more positive cases were reported, along with 29 deaths in last 24 hours, taking the total count of cases to 9,264 and deaths to 566. “5,101 people are stable and 39 people are on ventilators. A total of 3,562 people have been discharged so far. As many as 12,2297 tests have been done so far,” said Ravi.
