As reported by Telugu 360.com, Telangana Chief Minister K Chandrasekhara Rao on Monday has raised the issue of fiscal stimulus package to the state government during the fifth video-conference of Prime Minister Narendra Modi with all the CMs.
Rao has explained the current financial status of the State arising out of the complete lockdown for more than 45 days to contain the spread of Covid-19. KCR demanded enhancement of the Fiscal Responsibility and Budget Management (FRBM) from the present 3.5% to 5%. Pointing out that the corona virus pandemic has dealt a huge blow to the state economy, KCR sought deferment of loan installments to be paid by the Telangana government by at least six months and also permission to raise more loans.
He also asked the PM to relook at the list of the Green and Orange zone in view of the changed scenario in Telangana with Covid-19 cases steadily decline in certain zones. Further, he informed the PM that a vaccine for Covid-19 can be expected by either August or September as several pharma companies in Telangana are working towards this.
Most importantly, Rao requested the Prime Minister not to restart train services as this will lead to the spread of the coronavirus. In a video conference, KCR said the spread of the virus was severe in Mumbai, Chennai and Delhi. Restarting train services will lead to dangerous spread of the virus which will be difficult to screen, contain and providing quarantine will be impossible, KCR told the PM. After a 40-day lockdown, Indian Railways decided to gradually start train services from tomorrow. KCR, however, hailed the central government for running Shramik special trains for migrant workers.
While KRC opposed train services fearing spread of corona virus, Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy appealed to the Prime Minister for removal of all restrictions on public transport across states and free movement of people. He called for complete removal of restrictions on inter-state transport of goods by all states.
Addressing the videoconference, Jagan pointed out that since corona virus had become a new reality, the central government has to evolve new strategies to prepare people to “live with the virus”. He told PM that since “we have to live with the virus” which is new normal, Jagan had sought Rs 16,000 crore funds to improve the medical facilities in Andhra Pradesh. “We need to prepare people to live with coronavirus till vaccine is ready. The current containment strategy of delineating an area as a containment cluster and that of institutional quarantining must be re-looked and we may move towards a strategy of public awareness, self-reporting of symptoms, testing, treatment and self-isolation”, he said. The Chief Minister also said awareness has to be heightened on social distancing, use of masks and hand sanitizers.
In the video conference with PM on Monday, Jagan sought a host of stimulus measures, including a year-long moratorium on GST payments, tax cuts, relief to MSME sector among others. He pointed out that 94% of the micro, small and medium enterprises (MSMEs) units have shut down and that state government was not able to sustain their business owing to liquidity crisis. The complete lockdown has severely impacted the MSME sector in the state, he informed the PM. In view of this, Jagan sought waiver of electricity bill payments of commercial entities, particularly MSMEs. Jagan wanted the Centre to defer GST, provide short-term collateral-free loans among others.
