In a seven-pointer letter written to Union Finance Minister Nirmala Sitharaman, Thomas Isaac, Kerala Finance Minister, suggested proposals on how the Centre can help the state in dealing with the fast-spreading coronavirus disease, COVID-19. This is in continuation with his discussions with the Union Minister during the recent 39th GST (good and service tax) Council.
Among the proposals, Thomas Isaac urged Nirmala Sitharaman to enhance the allocation for the health sector and permit the state to utilise the State Disaster Response Fund (SDRF) for dealing with COVID-19.
Thomas Isaac pointed out that the SDRF matter has been taken up by Chief Minister Pinarayi Vijayan with Prime Minister Narendra Modi. “Orders were issued to states permitting the utilisation of SDRF for dealing with COVID-19 but within hours, it was modified, by which the compensation to families who lost members to this disease and expenses for treatment of positive cases was withdrawn. The need of the hour is that the SDRF norms should be further liberalised,” he writes in the letter.
The Home Ministry’s allocation must be enhanced, he wrote, depending on the severity of the health crisis. He also urged the Finance Minister to increase the number of person-days of employment and wage rates under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) since the virus outbreak is having a serious impact on employment.
This would also require more consumption credit to the poor. “The best way to do so will be through self-help group networks,” Thomas Isaac wrote, referring to Kudumbashree.
Larger credit for the Small and Medium-sized Enterprise (SME) sectors, reducing the price of petroleum products, a moratorium on repaying loans of commercial banks are some of the other proposals in the state finance minister’s letter.
“The economic situation in the state is rapidly deteriorating in the context of the pandemic. I hope you would favourably consider releasing the entire overdue of GST compensation, amounting over Rs 3,000 crore, or permit an increase of 0.5 % of borrowing limit in the current financial year to tide over this emergency situation,” Thomas Isaac wrote.