State governments for quite some time have been seeking funds and assistance from the central government amidst the coronavirus pandemic despite some major donations made to PM CARES fund.
Puducherry Chief Minister V Narayanasamy has said that Prime Minister Narendra Modi was non-committal on fiscal assistance to states despite them apprising him of the financial sufferings during a video conference.
Therefore, there was no other option for the Union Territory except to borrow from the Reserve Bank of India to tide over the current fiscal crisis, he told reporters here on Monday night after participating in the video conference of chief ministers with Modi.
Narayanasamy said he had brought to the Prime Minister’s notice the fall in the revenue due to closure of all business establishments, liquor shops and industrial units since the COVID-19 lockdown began in March. He said salaries were paid to the territorial government staff for March and April. But the present situation was grim and hence a way out should be found.
“The Prime Minister was non-committal on the fiscal assistance to states and there was no reply whatsoever from him to the projection of fiscal sufferings of the states,” he said.
Replying to a query, Narayanasamy said he felt that Modi would continue the lockdown beyond May 17 but ease curbs.”A real picture will emerge only on the night of May 17,” he said.
The Prime Minister asked the Chief Ministers to send him a detailed report before May 15 on the next course of action. Narayanasamy said people should be calm and help win the battle against the pandemic.
On Monday, West Bengal Chief Minister Mamata Banerjee, in an unexpected turn of the event during the PM-CM call, also called out Prime Minister Narendra Modi and accused his government of playing politics over the coronavirus issue.
“This is not the time to play politics. Nobody ever asks our opinion… Don’t bulldoze the federal structure,” NDTV quoted her as saying. She further accused the centre of working according to a ‘script’ and also of discriminating among the states. “When we are cooperating with you, why are you attacking us? Why is it always Bengal, Bengal, Bengal ? Why criticise?” she said.
Earlier, Kerala CM called out central government’s ‘anti-federal’ move for suspending the Members of Parliament Local Area Development Scheme (MPLADS) fund amidst coronavirus pandemic. In a series of tweet CM Pinarayi Vijayan said, “We feel that the decision to suspend MPLADS is illogical and amounts to an anti-federal move. Some MPs of Kerala were making good use of it; which will now be lost to the State.”
The assistance provided by the Centre to states for COVID19 efforts are unequal and discriminatory in nature. The Centre should reconsider their decision and the MPLADS fund should be restored to improve the response of the states to #COVID19.
— CMO Kerala (@CMOKerala) April 7, 2020