Baghel urges PM to keep credit limit at 6%, fiscal deficit at 5%

Raipur, May 1 (IANS) Citing financial problems amid the coronavirus-induced lockdown, Chhattisgarh Chief Minister Bhupesh Baghel on Friday requested Prime Minister Narendra Modi on Friday that the credit limit for his state this year should be relaxed to 6 per cent and its fiscal deficit should be kept at 5 per cent of the GSDP.

In a letter to the Prime Minister, he said this would be needed to provide relief to the distressed people in the state and to help Chhattisgarh arrange for more financial resources to conduct development works.

Baghel pointed out that due to the effective way the nationwide lockdown was implemented in the state from March 22 to arrest the spread of Covid-19 pandemic, all economic activities across the country including in Chhattisgarh were stopped, causing revenue loss to the state.

The complete lockdown has mostly affected the financially weaker sections including daily wagers, labourers, small shopkeepers and most rural families.

Baghel stated in the letter that all the departments of the state have been allotted budget for fiscal 2020-21. Financial resources are required for expenditures related to basic needs.

Noting that the Union Finance Ministry has approved 50 per cent of the net credit limit, i.e. Rs 5,375 crore, to Chhattisgarh to take market loans in the first nine months of this financial year, the Chief Minister said that this is insufficient for the expenses in the current situation.

–IANS

suj/vd