Confusion in the capital
But the most serious issue is the fiscal crisis Kerala is about to encounter, with the Central government ignoring its long-pending demands to raise the deficit ceiling of the State and to pay the GST (goods and services tax) arrears due to the State or for more resources for the health system.
According to a report by the State Planning Board, Kerala suffered a loss of Rs.29,000 crore as a result of the nationwide lockdown from the first 10 days in March to May 3. The agriculture sector alone, including the plantation sector, suffered a loss of Rs.1,570.75 crore. The fisheries sector suffered a loss of Rs.1,371 crore and the animal husbandry sector Rs.181 crore. Production loss in the industrial sector was an estimated Rs.8,000 crore. Hotel and restaurant sectors had an income loss of Rs.17,000 crore, and the tourism industry has had a temporary loss of Rs.20,000 crore. In the IT sector, there was a daily loss of 26,200 jobs and in allied informal sectors the job loss was 80,000 per day.
Unlike in many other States, the people, especially those belonging to the underprivileged sections, in Kerala were largely protected from the initial severe impact of the lockdown by the special measures implemented by the State government, among them an immediate livelihood package worth Rs.20,000 crore. The State had taken upon itself the responsibility of providing all the primary needs of the people, including free food and accommodation, free ration, food through community kitchens to all needy people, including thousands of “guest workers”, immediate release of welfare pensions and arrears, and interest free loans to thousands of members of the Kudumbashree network in addition to the provision of huge resources needed to run its acclaimed COVID-19 prevention efforts.
However, a serious financial crisis is threatening the State, which has already forced it even to issue an ordinance to defer a portion of the salary of its employees equivalent to six days for each month from April 2020 to August 2020—a total of one month’s salary by the end of the fifth month. The ordinance was issued after the Kerala High Court issued a two-month stay to an executive order issued by the government earlier to this effect, which was challenged by the opposition employees’ organisations.
The State has now no other go but to wait for assistance from the Central government if it is to move forward, with what the State Finance Minister says it has in hand now: “zero income”.
As of May 4, Delhi continues to be the third worst affected region in India after Maharashtra and Gujarat, with 4,898 cases of COVID-19, of which there are1,431 recoveries and 64 deaths. Over the preceding week, the number of new infections grew by an average of 7 per cent every day, while the recovery rate was 29.22 per cent, which is slightly better than the national rate of recovery.
With the daily surge in cases not abating, the Central government declared as red zones all 11 of Delhi’s districts. The State government further demarcated a dynamic list of 100 containment zones within the city, which as of May 4, has fallen to 90. No activity apart from emergency services is allowed in these zones. Outside them, certain activities are allowed as per the Centre’s guidelines.
As the third phase of the lockdown began on May 4, a considerable number of relaxations were allowed outside the containment zones. But confusion prevailed. While shops selling essential goods were allowed to operate all over the National Capital Region, shops selling nonessential goods, neighbourhood shops and standalone