Need Centre nod to raise funds: MP CM

nNEW DELHI : Several state governments have urged the Centre to relax the provisions of the Fiscal Responsibility and Budget Management Act which will allow them to raise more funds to spend on boosting the economy which has been hit by the Covid-19 crisis and the ongoing nationwide lockdown, Madhya Pradesh chief minister Shivraj Singh Chouhan said on Saturday.

Interacting with journalists through video conferencing, Chouhan said he felt the next phase of the lockdown would give significant room for kick-starting economic activities even though curbs would be firmly in place in severely affected zones.

The Madhya Pradesh government could even offer a package to some like salons and barbers as they may have to continue to keep their businesses shut, the chief minister said. Chauhan said his government had assigned top priority to ensure that migrants passing through the state to Uttar

Pradesh, Bihar, Jharkhand etc are facilitated.

“States have requested the Centre to make relaxations in the FRBM Act to allow them to raise more funds. The Centre is considering this request. Presently, the act allows a state to raise funds amounting to 3.5% of its GDP and if this limit is raised by a couple more points, Madhya Pradesh can raise ₹15,000 crore more which can be used to boost the economy,” he said.

Chouhan also called for proper coordination among states to ensure that migrant workers are provided transport to their homes. The MP government has deployed 1,000 buses to ferry migrant workers, Chouhan said.

With the third phase of lockdown ending Sunday and Prime Minister Narendra Modi speaking of an “entirely different lockdown-4.0”, Chouhan said the focus should be on speeding up economic activities while ensuring that Covid-19 is contained. “We will have to fight the virus and take measures to kick-start the economy,” Chouhan said.