| Chennai |
September 22, 2020 9:34:28 am
The state government-appointed expert committee shaped to examine the pandemic’s impact on Tamil Nadu’s economic system has stated the lockdown to curb the unfold of Covid-19 has left the state in a foul form.
A prime official stated the expansion rate is “going to be affected badly in this financial year… mostly into a negative zone”. Assessing the impact on numerous sectors and the lifetime of the widespread man, the committee headed by former RBI governor C Rangarajan has advisable that the state authorities perform a second spherical of cash distribution, moreover making a number of different suggestions.
A senior official stated the Rangarajan-led panel has advisable that the state authorities roll out an “urban employment guarantee scheme” modelled on MGNREGA. The committee’s report, which was handed over to Chief Minister Edappadi Ok Palaniswami on Monday, has additionally advisable an extra finances allocation of Rs 10,000 crore for capital expenditure and an “affordable rental housing scheme” for the working class inhabitants in cities and cities.
A senior authorities official stated the committee had assessed the impact of the lockdown on numerous sectors and predicted large implications in a number of sectors, “may be except in the agriculture sector”.
The report has said that the disaster within the MSME sector has affected the manufacturing sector too. “The report warned that there may be a 13 to 15 % decline in the total output of the manufacturing sector in this financial year due to the severe impacts of lockdown on MSMEs, which has suffered anywhere around Rs 34,000 to 41,000 crore loss in this financial year,” the official stated.
According to the report, whereas providers reminiscent of banking and IT have been minimally affected, actual property, retail and tourism sectors have suffered an enormous impact.
The authorities official stated the committee advisable that the state authorities proceed free foodgrain distribution for a couple of extra months past November and yet another spherical of cash disbursement. The authorities has accomplished one spherical of cash disbursement of Rs 1,000 among household card holders throughout the state. It has carried out a second spherical in Chennai and Madurai as lockdown was prolonged for an extended interval in these locations.
The committee informed the federal government to keep away from any plans to hike bus fares at the same time as transport companies are in a disaster.
“Additional budget allocation may be announced soon as it is essential to generate employment and revive growth. An announcement in this regard may be a matter of time as we can make use of the unused fund, Rs 3,200 crore, meant for the welfare of construction workers,” the official stated.
The committee has additionally thought-about requests for tax concessions from sectors reminiscent of animal husbandry, actual property and tourism.
An official stated the federal government could also be prioritising the city employment guarantee scheme and the inexpensive rental housing scheme because the state’s city inhabitants and dealing class inhabitants require quick consideration.
Besides Rangrarajan, the committee has members from the federal government in addition to industries. While extra Chief Secretary (Finance) S Krishnan serves as coordinator, different senior members embrace former Chief Secretary N Narayanan, N Srinivasan of India Cements, Venu Srinivasan of TVS Motors and senior economist M Suresh Babu of IIT-Madras.
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