Kerala Chief Minister Pinarayi Vijayan on Friday stated there was nothing new within the announcement of the Centre’s allocation of extra money to the
states for the welfare of migrant employees and the quantity allotted to the Catastrophe Reduction Fund was only a share of the
Vijayan stated the 15th Finance Fee had allotted a central share of Rs 314 crore to Kerala however the State has solely half of it, Rs 157 crores.
“We’ve got requested the Prime Minister to permit particular grants to the states within the context of COVID-19 state of affairs and make this a further consideration for inclusion within the Second Report of the 15th Finance Fee.
It’s inappropriate to painting the central contribution to the Catastrophe Reduction Fund as assist for COVID-19 prevention,” Vijayan stated.
He reiterated the demand of the state to extend its borrowing restrict from the present three per cent to five per cent.
“There may be nothing new within the announcement of the Union Finance Minister’s allocation of extra money to the states for the welfare of employees working in different states. The quantity allotted to the Catastrophe Reduction Fund is only a share of the Centre.
The 15th Finance Fee had allotted a central share of Rs 314 crore to Kerala however the State has solely half of it, Rs 157 crore,” Vijayan stated.
The chief minister stated the state wants a hike within the borrowing restrict to beat the monetary constraints as there was a drastic fall within the income assortment as a result of COVID-19 induced lockdown.
“The Centre has not too long ago elevated its borrowing restrict to five.5 per cent however the state’s restrict continues to be at three per cent.Regardless of repeated requests, the Centre has not bothered to extend the borrowing restrict. It isn’t in step with the fundamental ideas of a Federal system,” Vijayan stated.
He additionally stated that from the Catastrophe Reduction Fund, the state has already given Rs 17 crore to District Collectors for reduction work and Rs 15 crore to the Well being Division for purchasing medical gear.
“As per the norms, solely 25 per cent of the state’s outlay could be spent on reduction work and 10 per cent on buying gear.Solely this a lot can be utilized from SDRF quantity.
The state is utilizing budgetary quantities to distribute welfare pensions,” Vijayan stated. The State Planning Board and the Gulati Institute
of Finance and Taxation (GIFT) have been tasked with conducting a examine on the financial affect of the state following COVID-19.
Vijayan stated as per the GIFT report, it’s estimated that there will probably be a income lack of Rs 35,455 crore and the income and monetary deficit will improve if the expenditure, together with social welfare expenditure, stays the identical.
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