Claiming that the state's economy is on ventilator, Punjab Chief Minister Amarinder Singh has shot a letter to Prime Minister Narendra Modi, seeking an economic revival package post the third phase of lockdown. With less than two per cent of the industry operational in the state, Singh has asked the PM to concentrate on a revival strategy on not only containing COVID-19, but also on economic revival of the states.
Punjab is facing acute economic crisis, Singh said, and demanded again the revenue grants for states to meet the shortfall of revenue.
“The exit strategy may not only lay down the parameters to contain the COVID-19 within safe limits, but also should define the path of economic revival. It should consider and focus on fiscal and economic empowerment of states,” read the letter.
Though Haryana seems confident in bringing its economy back on track in next two months, the state is struggling to keep the economic catastrophe at bay. Various industries, through forums like Confederation of Indian Industry, have warned of permanent shutdown if not revived with central help in next six months.
“The industrial health of the state, especially MSMEs, is in a critical state and despite all its strategies and efforts, the state government cannot lend much of financial help without Center's support. A large number of MSMEs and small industries will shut down leaving many jobless. It's high time that the state, which was already under immense financial burden, was bailed out by the Center,” Bhavdeeep Sardana, member Punjab Planning Board and Vice President CII Punjab Chapter told THE WEEK.
Meanwhile, the chief minister highlighted that subsequent lockdowns have brought in an unprecedented crisis. “The poor has been worst affected; business, jobs and opportunities are lost. At the moment we cannot even analyze its true impact. The state government will do everything possible to contain coronavirus but we require a clearly-defined revival strategy and grants to help us bridge the gap between falling revenue and increasing expenditure,” he said.
It may be noted the state has already formed a high-powered committee headed by former deputy chairman of the planning commission Montek Singh Ahluwalia and guided by noted economist and former prime minister Manmohan Singh to revise the most viable lockdown revival strategy for the state and their first report is expected by July end.
Speaking to THE WEEK, Vinni Majahan, Additional Chief Secretary, Department of Industries and Commerce, IT and Investment Promotion, said that the state is doing its best to keep industries going and ensuring that livelihoods are retained. “We are facing major challenges, be it loss of revenue, lack of aid or even the desperate exodus of industrial workers. But the state is doing everything possible to safeguard industrial interests, while trying to contain corona”.
