Sonia Gandhi suggests a range of austerity measures to raise funds to fight coronavirus

Our Bureau Updated - April 07, 2020 at 07:10 PM.

Steps include scrapping ₹20,000 crore central vista project, moving funds in PM Cares to existing relief fund, cancelling foreign travel by VVIPs including PM

Congress president Sonia Gandhi

Congress president Sonia Gandhi, responding to a call from Prime Minister Narendra Modi for suggestions to combat Covid-19, proposed a number of austerity measures such as dropping the ₹20,000-crore Central Vista project — the construction of a new Parliament, Prime Minister’s residence and other buildings. The UPA chairperson also asked Modi to transfer all money under ‘PM Cares’ fund to the ‘Prime Ministers National Relief Fund’ (‘PM-NRF’) to ensure transparency.

Supporting the decision to reduce salaries for MPs, she said austerity measures are the need of the hour for raising funds to fight Covid-19. “First, Impose a complete ban on media advertisements — television, print and online — by the Government and Public Sectors Undertakings for two years. The only exceptions should be advisories for Covid-19 or for issues relating to public health. Given that the Central Government currently spends an average of ₹1,250 crore per year on media advertisements (not including an equal or greater amount spent by PSUs and Government companies), this will free up a substantial amount to alleviate the economic and social impacts of Covid-19,” she said in a letter.

‘Central Vista’

She said the ₹20,000 crore ‘Central Vista’ beautification and construction project should be suspended forthwith. “At a time like this, such an outlay seems self-indulgent to say the least. I am certain that Parliament can function comfortably within the existing historical buildings. There is no urgent or pressing requirement that cannot be postponed until this crisis is contained. This sum could instead be allocated towards constructing new hospital infrastructure and diagnostics along with equipping our frontline workers with Personal Protection Equipment (‘PPE’s’) and better facilities,” she said.

The UPA chairperson said it makes sense to order a proportionate reduction of 30 per cent in the expenditure budget (other than salaries, pensions and central sector schemes) for the Government of India as well. “This 30 per cent (₹2.5 lakh crore per year approximately) can then be allocated towards establishing an economic safety net for migrant workers, labourers, farmers, MSME’s and those in the unorganised sector,” the letter added.

She also urged that all foreign visits including that by the President, the Prime Minister, Union Ministers, Chief Ministers, State Ministers and bureaucrats must be put on hold. “Exceptions can be made in case of special emergency or exigencies in national interest to be cleared by the PM. This amount (which is around ₹393 crore for just the Prime Minister and Union Cabinet’s trips in the last five years) can be utilised extensively in measures to combat Covid-19,” she said.

‘PM Cares’ fund

She said transfer all money under ‘PM Cares’ fund to the ‘Prime Ministers National Relief Fund’. “This will ensure efficiency, transparency, accountability and audit in the manner in which these funds are allocated and spent. It seems like a waste of effort and resources to have and create two separate silos for the distribution of funds. I understand that ₹3,800 crore approximately are lying unutilised in the PM-NRF (at the end of FY2019). These funds, plus the amount in ‘PM-Cares’, can be utilised to ensure an immediate food security net for those at the very margins of society,” she added.

Published on April 7, 2020 13:40