Chief Minister Pinarayi Vijayan on Monday said Kerala’s economic situation was grim.
The COVID-19-spurred lockdown had cost the State an estimated ₹80,000 crore by a conservative estimate.
It had brought the State’s economy to its knees and losses were continuing to mount as the lockdown endured.
Losses
Casual labourers had lost ₹14,000 crore in wages alone. The lockdown had deprived hotel and restaurant business of business more than ₹20,000 crore. The hospitality sector had braced itself for more losses, the Chief Minister said.
Retail business had suffered. The lockdown had pushed convenience stores and mom-and-pop neighbourhood shops almost out of business.
The epidemic had caused a steep rise in public health expenditure. It had shut down State’s conventional sources of revenue.
Unemployment was on the rise. Kerala, like other States, required a special financial package to steer its economy safely out of the lockdown and nudge it back on the course to normality.
Mr. Vijayan said Kerala required money to provide relief to small businesses initially.
Loans sought
He urged the Centre to extend small interest loans to traders and lay the ground for enhanced EPF and ESI contributions. The welfare component of the incoming financial stimulus should focus more on the needy and help them, including Gulf returnees, rebuild their lives.
Mr. Vijayan said the government wanted the State to return to normality soon. Hence, it had decided to go in for widespread testing.
Public transport
The Centre was expected to issue a fresh set of guidelines for States soon. Kerala hoped to restore public transport and mobility in a limited manner. However, it would continue to impose social distancing norms well into the future.
Mr. Vijayan said the State had to prepare itself for a vigorous monsoon. District administrations had come up with distress mitigation plans.
