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‘States just don’t require praise alone, but financial assistance’: Kerala’s Finance Minister to PM Modi

Thomas Isaac while speaking to journalists at Thiruvananthapuram , said that that banks were charging heavy interest from states during the present crisis and the states expected financial assistance from the centre and not just praise.

‘States just don’t require praise alone, but financial assistance’: Kerala’s Finance Minister to PM Modi

Finance Minister of Kerala Thomas Issac (File Photo: IANS)

Kerala, the first state in the country to report the coronavirus infection in late January and being praised for its handling COVID-19 outbreak, slammed Prime Minister Narendra Modi for not announcing any additional financial package to deal with the pandemic. The state’s Finance Minister Thomas Isaac said it was not just praise which states wanted, but assistance to tide over the difficult situation.

Thomas Isaac while speaking to journalists at Thiruvananthapuram , said that that banks were charging heavy interest from states during the present crisis and the states expected financial assistance from the centre and not just praise.

“The Prime Minister, in his address to the nation, praised the states for the effective dealing of the pandemic. I feel that states just don’t require praise alone, but financial assistance. When we approach banks for loans, the interest rate is nine per cent. Most of the states have limited the borrowing to Rs 500- 1000 crore and started cutting off salaries or halting other developmental activities,” he said.

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Isaac added that the lockdown extension would control the deadly virus and urged the centre to conduct intense testing in the country and the states will be constrained without additional resources.

Finance minister said that the state cabinet would take a decision on restrictions during the second phase of lockdown, on Wednesday after the centre issues guidelines

The Minister said that though the situation in Kerala was improving, it was not the case in other parts of the country.

“It seems like the number of patients are doubling every four days. Lockdown is the only way to preventit from spreading.

Also we have a learnt a lesson that we need more testing in our country,” he said.

He also added that the Centre must take notes from the lockdown since the past three weeks.

“The first lesson is that without extensive testing, lockdown will not be effective and the second is that without income support, migrant workers across the country will refuse to comply with lockdown protocol and start travelling to their native lands,” Isaac said.

He said lack of extensive testing is a “weak point” of the country even though an effective lockdown was imposed.

“Livelihoods will collapse as the number of families employed in MGNREG falls to one per cent of normal. The centre should transfer at least half of last year’s wages, as advance at least to the accounts of every registered worker. It should also increase the work days to 150,”he said.

The Minister said the Centre should provide financial assistance by borrowing money from the Reserve Bank and provide it to states.

He also said the restrictions in Kerala can be relaxed in those districts where there were no new cases for over a week or there was a reduction in the number of patients.

Agriculture, small-scale industries, construction sector mainly road constructions and repair, export sectors are priority areas which are likely to get relaxation in restriction.

“The decision in this regard will be taken by the cabinet tomorrow”, Isaac said.

Kerala had proposed extending the lockdown and gradual phasing out after proper assessment.

The state currently has 379 positive cases of COVID-19 out of which 198 have recovered from the disease and 3 fatalities have been reported so far, according to Ministry of Health data.

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