States ask PM Modi for special financial package

Cash-strapped state governments on Monday demanded that Prime Minister Narendra Modi personally intervene to announce a special financial package for them.

States are demanding a special package as their tax collections, especially from liquor and fuel sales, are dwindling because of the lockdown, even as they have to spend more to combat the coronavirus outbreak and its economic fallout.

In the meeting with Modi on Monday, chief ministers also raised concerns over the fate of migrant workers, inter-state transportation of goods and the need for a graded withdrawal of the lockdown. This was the fifth such meeting in the past 51 days to discuss the impact of the pandemic.

Among states that raised their concerns were Chhattisgarh, Rajasthan, Punjab, Odisha, Tamil Nadu and West Bengal. Some states that are ruled by parties of the Bharatiya Janata Party-led National Democratic Alliance (NDA), including Bihar, also demanded more funds from the Centre.

“The fight to contain coronavirus must not have a compromising effect on the economy. Northeast has great potential areas for investment, particularly in horticulture and agriculture sector. I request PM to continue working to bring in investment for the region,” tweeted Pema Khandu, chief minister of Arunachal Pradesh. Khandu is a member of BJP.

In the course of the meeting, which lasted for more than six hours, Punjab chief minister Captain Amarinder Singh demanded that the 15th Finance Commission conduct a detailed assessment to suggest financial aid to states.

“Farmers should get ₹5,100 crore under Rajiv Gandhi NYAY scheme and it should start from this month itself,” said Bhupesh Baghel, chief minister of Chhattisgarh, in the meeting, adding that the state should get a financial support of ₹30,000 crore.

In the meeting with Modi, Maharashtra chief minister Uddhav Thackeray also demanded a special package for farmers. Chief ministers of Congress-ruled states have all demanded a financial package for the rural sector, another one for migrant labourers who have returned home, apart from powers to decide on classification of zones.

In the backdrop of a confrontation between the West Bengal government and the centre, chief minister Mamata Banerjee said the Centre should not play politics with states. According to people aware of the developments, Banerjee spoke about the need to ‘treat all states equally’ and that the challenge to contain the outbreak is more for bigger states with international borders.

Banerjee’s statement follows the home ministry criticizing the state for not allowing cross-border movement of essentials.

PTI contributed to this story.