Will announce economic package soon, says Deputy CM Ajit Pawar

Will announce economic package soon, says Deputy CM Ajit Pawar

To focus on the vulnerable sections of the society

Sanjay JogUpdated: Friday, May 29, 2020, 11:48 PM IST
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BL Soni

Notwithstanding its cash crunch, the Maharashtra government will soon announce an economic package to help the poor and unorganised sector. Deputy Chief Minister Ajit Pawar, who holds the finance department, said the state cabinet will give an approval for the same. He said, even though the central government has announced the Rs 20.97 lakh crore package, there are different views on how much money will actually reach the people who are badly hit because of COVID-19 pandemic.

Even though Pawar has not divulged further details on the proposed economic package, Finance Department officers told the Free Press Journal that the government will focus on the vulnerable, including daily wage earners and farmers.

“The vulnerable rural poor and daily wage earners are hit hard and need to be supported directly till the situation improves and they get back to work. A web-based Aadhar, public distribution system, and SECC data may be initiated to reach out to these sections in this challenging period,’’ said a senior officer.

In order to revive the rural economy and provide support to vulnerable sections, the government will focus on MGNREGA to provide employment to the rural labour force for their livelihood and also help increase demand. Given these wages are funded by the central government, there will be no burden on state exchequer.

For the revival of agriculture, the government has implemented the crop loan waiver scheme, though 11 lakh farmers are yet to get the benefit due to the lockdown. The government may borrow under Rural Infrastructure Development Fund from National Bank for Agriculture and Rural Development (NABARD) at 3.5 per cent to support planned infrastructure like roads and irrigation. It may also borrow from the long term irrigation fund at 6 per cent to execute identified irrigation projects. Further, the state government can continue its plan of 4 per cent interest subvention on crop loans.

As far as industries is concerned, the Maharashtra Industrial Development Corporation (MIDC) already announced deferment of premium and other charges without charging interest. “The state government may take measures to infuse liquidity into the industries and support them in reducing costs. States could use state level bankers committee/lead bank machinery to support small businesses. Major costs for industries could be reduced through reduction in electricity-related duties and charges, rationalisation of water consumption costs, providing wage ex gratia assistance and subsidy schemes with delayed repayment options,’’ the officer informed.

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