Give Rs 1 lakh crore to states to help them deal with coronavirus outbreak: Cong to Centre

The Congress on Saturday appealed to the central government to empower states by providing them a financial package of Rs one lakh crore in their fight against coronavirus.

Congress spokesperson Supriya Shrinate said the Centre should also take state governments on board while evolving strategies to fight the deadly disease.

"We have talked about cooperative federalism. Time has come that we should walk the talk, because the real battle is being fought at the state level and we need to enable states to win, she said.

"The Centre should take the states together with it, empower them by providing them with more finances and resources. It is only when the states are capable and when the Centre has decentralised, that we can win this war against coronavirus," she said.

Addressing a press conference via video, the Congress leader said states are at the forefront of the fight against coronavirus, while implementing and executing various policies on the ground and thus need to be empowered.

Shrinate said the Centre should provide Rs one lakh crore to states to fight COVID-19, besides releasing pending GST dues of Rs 42,000 crore to state governments with immediate effect.

"The states at this time are facing the biggest financial crisis in fighting the virus. The central government should provide a Rs 1 lakh crore package for states to fight COVID-19," she told reporters.

States need money to set up quarantine facilities, testing labs, PPEs, thermal scanners, ventilators and air purifiers, besides providing for the weak and vulnerable being impacted by the lockdown, she said.

We urge the Centre to decentralise and empower states because 'the one size fits all strategy' cannot succeed, Shrinate said.

In a dynamic situation, real solutions to combat the disease and the economic calamity exist at the local level, the Congress spokesperson said.

"We urge the government yet again to create a national consensus by putting in place a structured consultative process between the centre and states while formulating our strategy to deal with the COVID-19 outbreak and the collateral damage of life and livelihood, she said.

"A similar consensus must also be arrived at by involving all political parties in key decision making at this crucial juncture than just unilateral announcements," she said.

Shrinate said despite assurances, the GST revenue that was to be compensated to states by the central government had not been done.

She also raised the demand for providing loans to states at zero per cent interest and urged the Reserve Bank of India (RBI) to enable such facilities in consultation with the central government.

The Congress spokesperson said states, unlike the central government, do not have enough capital and financial resources at their disposal.

A demand to allow trucks carrying essential commodities, stranded at state borders, was also made to help maintain the supply chain in the country which is giving rise to their shortage and consequent price rise.