A general freeze was enforced across the country due to the spread of corona infection. So many businesses were shut down and many lost their jobs. The country’s economy also suffered an unprecedented decline.
Due to the economic crisis, the revenue for the states is also low. In the situation of the spread of the corona epidemic, they are urging the central government to borrow from the financial market and thereby pay the GST compensation to the states.
Union Finance Minister Nirmala Sitharaman told on Monday: “The government has decided to lend Rs 12,000 crore without interest to the states in a bid to revive the economy which has been hit hard by the general freeze. States can repay the loan in a single installment after 50 years.
Accordingly, Rs 1,600 crore will be provided to the northeastern states and Rs 900 crore to Uttarakhand and Himachal Pradesh. Rs 7,500 crore will be shared with other states on the recommendation of the Finance Committee. The remaining Rs 2,000 crore will be lent to states for making the reforms recommended by the central government.
In addition, the employees will be paid for 10 days of salary with incentives. Employees can avail of this scheme for 4 years. Employees of public sector companies and public sector banks can also avail of this scheme. If the central government employees use the scheme, the government will lose up to Rs 5,675 crore.”