Punjab CM writes to PM Modi, seeks fiscal aid of Rs 80,845 crore as pandemic hits economy

Punjab Chief Minister Captain Amarinder Singh on Monday wrote to Prime Minister Narendra Modi seeking fiscal aid to the tune of Rs 80,845 crore from Centre, along with non-fiscal assistance on various counts to secure livelihoods of the people.

Pointing towards a ''large-scale devastation and distress'' caused to the state due to the COVID-19 pandemic, Amarinder Singh said, "The Centre's urgent intervention was needed to avert any major socio-economic upheaval in the coming future, as also to assure our next generations of safe living and security of livelihood in the country."

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Breakup of fiscal measures

The Punjab chief minister in a statement said a direct fiscal stimulus of Rs 26,400 crore and the waiver of the long-term CCL (cash credit limit) debt was extremely necessary for the fiscal recovery of the state. Additionally, all central schemes should be 100% funded by the Centre in 2020-21, the CM urged.

The Punjab government also sought Rs 6,603 crore for improvement in the state's public health infrastructure. Besides, the state will need an estimated Rs 15,975 crore for the upgrade of farm-gate infrastructure, one-time debt waiver, providing income support and interest subvention.

To contain the COVID-19 contagion in the rural areas, Rs 5,068 crore will be required for liquid and solid waste management in the villages, the CM demanded. To meet the post-COVID online and other educational needs, the state has sought an assistance of Rs 3,080 crore, with another Rs 8 crore for online training and stipend at Rs 1,000 per month for students during the lockdown period.

The government also sought Rs 757 crore for the new and renewable energy sector, Rs 571 crore for border area development and Rs 326 crore for the transport sector. Besides, Punjab has sought Rs 5,040 crore as fiscal assistance for the welfare of migrant labourers.

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Non-fiscal measures

The non-fiscal component of the aid would include an upward revision of capital outlay, targets under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and other major flagship programmes of the government, in addition to revamping of Inter-state Migrant Workers Act and amendments to Labour Reforms to ensure full protection of civil liberties and basic rights of agriculture and industrial labourers.

In his detailed memorandum, Captain Amarinder has drawn to the need for administrative, structural, and even statutory changes to ensure the safety and security of people in the new normal, given that the pandemic is here to stay for a long time. Further, the CM underlined the push needed for MSMEs of India, including interest waiver, broader ESI/ EPF contribution, higher interest subvention and expeditious GST refunds. Similarly, the power sector needs several policy interventions by the Government of India, he stressed.

(With inputs from agencies)

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