By Bizodisha Bureau, Bhubaneswar, April 8, 2020: Odisha government has urged the Centre to allow the states to breach the fiscal deficit target in view of the Covid-19 pandemic.

Attending the Prime Minister’s video conference on behalf of Chief Minister Naveen Patnaik, the ruling Biju Janata Dal MP Pinaki Misra siad that the central government has committed less than Rs two lakh crore, which is insufficient to counter the deadly virus attack.

Speaking to the media after the conference, he said, he believed the countrywide lock down could be extended. “Most chief ministers were for extending this lock down”.

“While most advanced countries have committed almost 10 percent of their GDP towards the corona fight package, India had so far committed Rs 1.75 lakh crore towards the poor and Rs 15,000 crore towards the health package, in total less than Rs 2 lakh crore. We are a $2.7 trillion economy and should be spending a bare minimum $ 250 billion or Rs 16 -17 lakh crore towards fighting Covid19 and its economic impact,” said Misra.

The state government also sought early release of funds, particularly for social protection schemes such as Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), old age pensions, rural and urban national health missions and Integrated Child Development Services etc.

“A whole amount of refinancing will be needed for the MSME, the airline industry, the hospitality industry, the real estate sector… we would need to subsidise the economy in its entirety for the next three four months. Therefore the time has come for breaching the self-imposed fiscal deficit barrier we put in place because these are war like times,” Misra remarked.

He also suggested that MPLAD funds which the Centre had suspended for two years be credited into respective Chief Minister’s relief funds so that it could be put to use immediately in the states that the MPs had been elected from. Misra also urged the PM to personally intervene to ensure all non-essential expenditure by the Centre was stopped.

Promising Odisha’s support to whatever the decision was on a possible extension of the national lock down, Misra asked for states to be allowed flexibility in deciding exit strategies on, for example, to what extent air and rail connectivity could be allowed.