COVID-19: Amarinder urges all CMs to pursue with Centre bailout strategy proposed by him
On April 21, Singh had sought from the Centre a three-month financial package for Punjab and an extension for the 15th Finance Commission for submission of its final report in the wake of the declining revenue of states.
In a letter to the chief ministers of all other states in the country, Singh appealed to them to write to Prime Minister Narendra Modi. He asked them to urge Modi to consider the strategy suggested by him to combat the crisis, a government release here said.
Pointing out that it was a "matter of concern", Singh said all states are reeling under the impact of shrinking revenues and heightened requirements of welfare and healthcare due to the COVID-19 pandemic.
He underlined the urgent need to request the government of India to give states a special three-month financial package with flexibility in spending as per local conditions.
He also urged the states to seek a review by the Finance Commission of its recommendations for the current year since the ground situation has completely changed due to the pandemic.
Singh appealed to his counterparts to seek deferment by a year of the full report of the Finance Commission, so that the states' post COVID-19 requirements for economic revival, relief and rehabilitation can be fully assessed and adequately addressed.
The Finance Commission's five-year report should begin from April 1, 2021, instead of 2020, after factoring in the COVID-19 impact, he suggested, urging all the chief ministers to take up the matter with Modi, who is spearheading the national efforts to contain the spread of the pandemic.
The commission is to give recommendations for devolution of taxes and other matters for the next five financial years starting from April 2020.
In his suggestions to the Centre, Singh had said that the three-month special financial assistance could help in meeting the additional health expenditure in the wake of coronavirus outbreak.
This package may be adjusted against the special COVID-19 revenue grant, he had suggested. CHS VSD DIVDIV