Asking Prime Minister Narendra Modi to clearly define the way forward for the country’s economic revival and an exit strategy from Lockdown 3.0, Punjab Chief Minister Amarinder Singh on Thursday reiterated his demand for grants to the States for three months to meet the shortfall in revenue and the higher expenditure being incurred on relief and healthcare for COVID-19 containment and management.
In a letter to the Prime Minister, the Chief Minister said: “The exit strategy may not only lay down the parameters to contain the COVID-19 within safe limits but should also define the path of economic revival. It should consider and focus on fiscal and economic empowerment of the States.”
The Chief Minister also called for a directive from the Centre to the 15th Finance Commission to review its report for the current year, as the situation has completely changed due to COVID-19. He also said that the 15th Finance Commission should recommend devolution of funds for five years, beginning April 1, 2021, instead of 2020, after factoring in the impact of COVID-19.
Captain Amarinder urged the Prime Minister to issue necessary directions to various ministries in this regard, in order to enable the States to formulate clear strategies and path, post-Lockdown 3.0 on May 17.
The Chief Minister pointed out that this was necessary as COVID-19 and the subsequent lockdowns had led to unprecedented loss of jobs, businesses and economic opportunities, and its true impact was yet to be known. Pointing out that it was very well known that the economy had slowed down and the GDP will not rise, the Chief Minister said Punjab’s revenues had declined by 88% in April 2020.
‘Poor worst affected’
“The poor have been the worst affected with damage to all aspects of their socio-economic living. The threat of poverty, hunger and health deprivation are far more imminent now. If socio-economic living of the common man is not restored immediately, there could be serious psychological dismemberment of our society,” he said.
