A precipitous race in revenues blended with the burden of the prices associated with the COVID-19 pandemic contain left Andhra Pradesh facing a ‘grave financial crisis’. Add to it the afflict in alternate, exacerbated by the mass migration of staff, and the Deliver authorities finds itself with slight probability but to stare on the Centre for liberal financial support, a stimulus equipment and statutory measures to relief the alternate.
Chief Minister Y.S. Jagan Mohan Reddy had apprised Top Minister Narendra Modi of the dire allege of affairs within the Deliver, at some level of a videoconference in April, and made a pitch for liberal financial advantage. The Deliver’s income had reportedly dipped to a mere ₹2 crore a day. “We couldn’t pay fleshy salaries for the month of March to our staff for this reason of the grave financial crisis,” Mr. Reddy talked about at some level of his interplay with the PM.
The income shortfall in A.P. within the wake of the lockdown change into about ₹5,000 crore a month, educated Finance Minister Buggana Rajendranath Reddy. The walk in receipts embody deep deficits in excise collections, sales tax, motor autos tax and income from mark responsibility and registration. And the deficit is anticipated to continue within the month of Would possibly perchance per chance even honest too, in step with the minister.
While the proper calculations of the Deliver’s funds and income deficit are yet to be confirmed, sources within the authorities talked about income receipts within the financial one year 2019-20 were possible to be about ₹1.04 lakh crore as against the income of nearly ₹1.15 lakh crore within the previous fiscal.
Despite the challenges, the authorities has spent about ₹1,330 crore on COVID-19 assistance to 1.33 crore white ration card holders within the Deliver. To boot, it spent ₹1,400 crore on interest waiver to ladies’s self-support groups. The authorities has furthermore made give an explanation for preparations, including meals and accommodation at some level of the lockdown, for approximately 70,000 migrant staff all over the 13 districts.
As a measure of give a boost to to alternate at some level of the unusual crisis, the Deliver has paid ₹905 crore of business incentives, which were pending since 2014, to the MSME sector. Besides, it has waived ₹188 crore in energy query charges and determined to manufacture ₹200 crore in low-interest working capital.
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The A.P. authorities is estimated to contain to this level spent extra than ₹10,000 crore on COVID-19 linked activities, financial assistance and reduction measures, the authorities sources, speaking on the condition of anonymity, revealed.
There change into furthermore no official yelp by the Deliver authorities on the extent of assistance given by the Centre to address the COVID-19 pandemic to this level.
The Centre has prolonged financial assistance amounting to ₹10,947 crore to A.P. thru varied schemes to mitigate the impact of COVID-19, BJP Deliver Secretary V. Jaya Prakash Narayana talked about in a press release.
To tide over the crisis, the Deliver authorities wants the Centre to preserve a slew of measures to boost alternate. In a letter to Mr. Modi on April 30, the chief minister listed A.P.’s contributions to the country’s economy including ₹98,983 crore price of exports at some level of 2018-19.
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Given the afflict all over the globe, the CM wished the Centre to facilitate a fund to provide a boost to MSMEs for liquidity wished to meet wage liabilities at some level of the lockdown, enable a moratorium on payment of PF, ESI and gratuity for six months, provide for a 12-month moratorium on all repayments for MSMEs, release of delayed payments and waiver of minimum energy charges amongst others.
On the GST entrance, Mr. Reddy instructed an amplify within the brink limit of GST compliance eligibility to an annual turnover of ₹100 lakh. He furthermore sought several supportive measures for the textiles, auto parts, pharma, metals and mining and meals processing sectors. And along with a stimulus equipment, he furthermore urged GST rate cuts.