As COVID-19 hurts Mah's economy, Sharad Pawar asks Centre to dole out Rs 1 lakh cr aid

As COVID-19 hurts Mah's economy, Sharad Pawar asks Centre to dole out Rs 1 lakh cr aid

Agency News

Pune, Apr 28 : While expressing apprehension over the economic fallout caused by the prevailing COVID-19 crisis, NCP president Sharad Pawar asked the Centre to dole out a corpus of Rs 1 lakh crore to the state of Maharashtra. Recently, Mr Pawar penned a letter to the Prime Minister Narendra Modi saying, "It is imperative that in these testing times, the Government of India should offer suitable financial assistance to the states also. The Government of Maharashtra requests additional grants of untied nature to the tune of Rs 1 lakh crore for the financial year 2020-21."

Corroborating his demand, he reasoned, "In the eventual recovery of Indian economy, the states will play a major role and if left out without any help, the states will not be in a position to supplement the required national government efforts. There should not be a problem in the central government resorting to deficit financing. It is felt that borrowing by central government will be much more efficient and cheaper compared to borrowing by the states."

"Mumbai is the hardest hit city in the COVID-19 outbreak and the prolonged lockdown conditions. It has severely impacted the economy of Maharashtra and may have detrimental consequences on Indian economy if not addressed urgently," he asserted. In another significant appeal to the Centre, the veteran politician also asked for a two-year moratorium on repayment of National Small Savings Fund(NSSF) loan given by the Union government. "The State makes a repayment of Rs 10,500 crore every year on account of the NSSF loan. The moratorium will help bridge the likely budgetary gap," he told. (UNI)