EPS asks Centre for ₹1,000 crore, gets ₹312 crore
Julie.Mariappan@timesgroup.com
Chennai:11.04.2020
Weeks after Tamil Nadu, the state that stands second in number of Covid-19 infections in the country, requested the Centre ₹3,000 crore for strengthening the state’s health infrastructure and ₹9,000 crore as grant, it has received just ₹312.64 crore as Covid-19 Emergency Response and Health System Preparedness Package under National Rural Health Mission, a centrally-sponsored scheme. The Centre allocated ₹510 crore a week ago to the State Disaster Response Fund (SDRF).
Pointing to inadequate funding, chief minister Edappadi K Palaniswami on Wednesday wrote to PM Narendra Modi and Union finance minister Nirmala Sitharaman to release an adhoc grant of ₹1,000 crore from National Disaster Response Fund (NDRF) immediately.
The ₹312.64-crore tranche is part of a scheme to be implemented in three phases between 2020 and 2024 for emergency response measures. The rest of the fund, whose full quantum has not been disclosed, will be provided under a mission-mode approach staggered over a period of four years. The fund will be utilised for strengthening state healthcare system to support prevention and preparedness for Covid-19, procurement of essential medical equipment, consumables and drugs, strengthening of surveillance activities, including setting up of laboratories and bio-security preparedness.
The ₹510 crore allocation to the SDRF was a routine budgetary allocation done based on the 15th finance commission’s recommendation done a few weeks ahead of schedule. However, the state, pressed by the immediate need to ensure medical supplies and equipment, creation of health infrastructure, feed migrant labourers and offer livelihood and income support to a large number of families, had already sanctioned ₹650 crore from the SDRF towards Covid-19 response efforts.
The directive from the Centre on SDRF spend as well as absorption of MPLADS for two years has come under scrutiny by states, as official sources indicate that no fresh funds have been ploughed into the system from the top. “The assistance provided by the Centre to states for Covid19 efforts are unequal and discriminatory in nature. The Centre should reconsider their decision and the MPLADS fund should be restored to improve the response of the states to Covid19,” Kerala CM Pinarayi Vijayan tweeted three days ago.
Unlike the previous finance commissions that used an expenditure-based approach to devolve funds for disaster management to states, the 15th finance commission used a disaster risk index which factored in flood, drought, cyclone and earthquake to give TN a score of 10 points (medium category). Because of this, the SDRF allocation went up 120.33% for all states and 110.79% for 18 major states, while for TN, the increase was only 64.65%. “With zero liquor sale and poor GST collection, the state’s tax revenue, which hovers around Rs 11,000 crore per month has taken a big hit,” said another official. The state government requires ₹5,500 crore to pay salary for its staff every month.
Madras school of economics director K R Shanmugam said the prevailing situation was akin to emergency and the state and central governments should extend financial support as much as possible. “The governments should not think of fiscal deficit now, given that it is like a war. We should protect the people,” he said. The state is now eying the contributions to CM’s public relief fund that surpassed ₹100 crore on Thursday.
Julie.Mariappan@timesgroup.com
Chennai:11.04.2020
Weeks after Tamil Nadu, the state that stands second in number of Covid-19 infections in the country, requested the Centre ₹3,000 crore for strengthening the state’s health infrastructure and ₹9,000 crore as grant, it has received just ₹312.64 crore as Covid-19 Emergency Response and Health System Preparedness Package under National Rural Health Mission, a centrally-sponsored scheme. The Centre allocated ₹510 crore a week ago to the State Disaster Response Fund (SDRF).
Pointing to inadequate funding, chief minister Edappadi K Palaniswami on Wednesday wrote to PM Narendra Modi and Union finance minister Nirmala Sitharaman to release an adhoc grant of ₹1,000 crore from National Disaster Response Fund (NDRF) immediately.
The ₹312.64-crore tranche is part of a scheme to be implemented in three phases between 2020 and 2024 for emergency response measures. The rest of the fund, whose full quantum has not been disclosed, will be provided under a mission-mode approach staggered over a period of four years. The fund will be utilised for strengthening state healthcare system to support prevention and preparedness for Covid-19, procurement of essential medical equipment, consumables and drugs, strengthening of surveillance activities, including setting up of laboratories and bio-security preparedness.
The ₹510 crore allocation to the SDRF was a routine budgetary allocation done based on the 15th finance commission’s recommendation done a few weeks ahead of schedule. However, the state, pressed by the immediate need to ensure medical supplies and equipment, creation of health infrastructure, feed migrant labourers and offer livelihood and income support to a large number of families, had already sanctioned ₹650 crore from the SDRF towards Covid-19 response efforts.
The directive from the Centre on SDRF spend as well as absorption of MPLADS for two years has come under scrutiny by states, as official sources indicate that no fresh funds have been ploughed into the system from the top. “The assistance provided by the Centre to states for Covid19 efforts are unequal and discriminatory in nature. The Centre should reconsider their decision and the MPLADS fund should be restored to improve the response of the states to Covid19,” Kerala CM Pinarayi Vijayan tweeted three days ago.
Unlike the previous finance commissions that used an expenditure-based approach to devolve funds for disaster management to states, the 15th finance commission used a disaster risk index which factored in flood, drought, cyclone and earthquake to give TN a score of 10 points (medium category). Because of this, the SDRF allocation went up 120.33% for all states and 110.79% for 18 major states, while for TN, the increase was only 64.65%. “With zero liquor sale and poor GST collection, the state’s tax revenue, which hovers around Rs 11,000 crore per month has taken a big hit,” said another official. The state government requires ₹5,500 crore to pay salary for its staff every month.
Madras school of economics director K R Shanmugam said the prevailing situation was akin to emergency and the state and central governments should extend financial support as much as possible. “The governments should not think of fiscal deficit now, given that it is like a war. We should protect the people,” he said. The state is now eying the contributions to CM’s public relief fund that surpassed ₹100 crore on Thursday.
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