Why is the fear of lockdown in states more than the central government?
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Hi Friends, please read this article about why there is a fear of lockdown in other states more than the central government.
Many
countries of the world are under lockdown to fight Corona. India will also have
to remain in lockdown till May 3, on 14 April Prime Minister Modi extended the
lockdown period due to the decline in the number of corona infected patients.
Gujarat had to take financial help
There is an atmosphere of fear among the states over the centre in the lockdown. After many
years, the Gujarat government had to seek help from financial institutions. The
corona epidemic caused the government's funds to decline. In the first week of
April, the Gujarat government took the help of Rs 2,100 crore at an annual interest
rate of seven and a half per cent.
Gujarat government will require Rs 3,150 crore every month so that the government can
pay the salaries of its five lakh employees and with the help of Rs 1,500
crore, the pensioners of the state can give pension. Apart from this, the
government may also need funds for other expenses.
Kerala's economy at its peak after 1956
Most states
are considering adopting the Kerala model to fight Corona, but the sad news for
Kerala is that after 1956 Kerala will go through the worst phase of its economy
so far.
Based on the
Gross State Domestic Product data for 2018-19, Kerala has lost 82 per cent of
its gross state domestic product in a 21-day lockdown. The next 19-day lockdown
is expected to cause a loss of about Rs 70,000 crore.
Kerala is
the first state to announce a relief package of Rs 20,000 crore to fight
Corona. Now the state has taken a number of Rs 6,000 crore from the market for
15 years at an interest rate of 8.96% per annum.
Relief to states from conditional relaxation in lockdown
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| Image Source: Wikipedia |
Apart from
this, the financial condition of some other states is not very good. According
to the Reserve Bank of India, at the beginning of April, within two weeks, the
state governments have taken a total amount of Rs 44,000 crore on loan.
The Corona the epidemic has badly affected more states than the centre. Indirect taxes are a
major means of revenue for states. State revenues are generated from indirect
taxes on petrol-diesel, alcohol, property transactions.
From Monday,
April 20, the state will be able to breathe a sigh of relief from the
relaxation with some conditions in lockdown. Revenue from oil makes a big
contribution, states will feel a little relief from this exemption. However, it
will take some time for the GST revenue on non-essential items to increase.
About 80 per cent of GST revenue comes from GST on non-essential items. Whereas most of
the essential goods and services are either tax-free or come in lesser slabs.
At the same time, the central government is dependent on the income of salaries
and tax on manufacturing, although these areas have also been affected, the
revenue of the states has been affected the most.
China on Monday
criticized India for its new strategy on FDI. China says that India's new plan
violates the principle non-partisanship of the WTO. Last week, the Indian
government made it necessary to take approval for withdrawal of investment from
foreign countries bordering the country.
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