Centre ignoring financial crisis in States: Congress

Chief Ministers of Congress-ruled States accused the Centre of taking unilateral decisions on fighting Covid-19 pandemic. They have also blamed it of inaction when the States are facing an acute shortage of resources. These concerns were raised at a review of the lockdown by senior Congress leaders through a video conference here on Wednesday.

Congress president Sonia Gandhi questioned the criteria used for decisions on lockdown.

“Pushed to fiscal distress”

Talking to reporters after the meeting, Congress’s media in-charge Randeep Singh Surjewala said there are two or three important takeaways from the conference, former Prime Minister Manmohan Singh and former Congress president Rahul Gandhi.

“Firstly, all the States were unanimous in pointing out that the Centre is pushing the States to fiscal distress by not allocating resources to fight Covid 19 and the economic crisis is looming large in cities, towns and villages. This is true not only for the Congress-ruled States but also for others. Some of them may not speak as they belong to the BJP or due to pressure of the Central government,” he said.

After lockdown, what?

The States wanted to know, what after lockdown 3.0. “What are the objectives and achievables of lockdown 3.0? On issues such as testing, rapid test kits, PPEs, reviving economy, there seems to be neither a roadmap nor an exit strategy. Was that the reason that the Prime Minister did not come forward and announce lockdown 3.0? The concern is will there be a lockdown 4.0 and 5.0 and when will it finally end? When will life begin in a safe fashion? Modi and his government need to answer these questions,” he said.

He added that the Chief Ministers were of the opinion that they will once again write to the Prime Minister and ask for financial assistance to be shared with the States so that they can fight the pandemic jointly with the Centre leading and States being the executing partners on the ground. “What is the alternative if the Centre is not opening up its purse to the States? This is not an issue of Congress ruled States. Every State Government is facing this crisis. On the one side Corona pandemic. On the other economic distress and on another side, Modi is not helping States to face this crisis. He should immediately release at least the GST arrears worth ₹2 lakh crore to the States,” he said.

He said States have assured that they have decided to pay for the travel of migrant labour and have asked the Railways for special trains. Punjab Chief Minister Amarinder Singh informed the meeting that ₹ 35 crore has been set aside and Railways is charging ₹870 per ticket.

Former Karnataka Chief Minister and senior leader Veerappa Moily said the strategy in declaring the lockout or coming out of it hasn’t been stated at all by Prime Minister or changed at all.

Former Finance Minister P Chidambaram said the States are bleeding in terms of finances but no money is being allocated by the Centre. “A number of newspapers have brought out the unavailability of finances with States,” he said.

Rahul Gandhi said the central piece of strategy to fight Covid is to protect the elderly as also those who are diabetic and with heart condition.

Chhattisgarh Chief Minister Bhupesh Baghel said: “States are facing dire economic crisis. They need to be provided immediate assistance. Over 80 per cent of small industries in the State have restarted and nearly 85,000 workers have returned to work.”

Manmohan Singh said Chief Ministers need to deliberate and ask as to what is the strategy of the government to get the country out of lockdown. “We need to know what will happen after lockdown 3.0?” he said.

Puducherry Chief Minister V Narayanasamy said the Centre is deciding on zones without consulting the States and this is creating an anomalous situation. “People sitting in Delhi can’t tell this to the States. No State or CM is consulted. Why? PM isn’t saying a word on economic package for States,” he said.

The Punjab Chief Minister suggested that two committees, one to strategise on how to come out of lockdown and other on economic revival, should be set up. “Concern is people sitting in Delhi are deciding on classification of zones without knowing what’s happening on the ground,” he added.

Rajasthan Chief Minister Ashok Gehlot said: “Until extensive stimulus package is given, how will States and Country run? We have lost ₹10,000 crore of revenue. States have repeatedly requested PM for a package but we are yet to hear from the Centre.”

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