The Central Problem

How the union government is undermining states’ fight against COVID-19

- NILAKANTAN RS

In his fourth address to the nation on the COVID-19 pandemic, on 12 May, Prime Minister Narendra Modi announced a headline-grabbing R20 lakh crore economic-relief package amounting to roughly ten percent of the GDP. The package was meant to provide relief after the economic destruction caused by the ongoing nationwide lockdown since 24 March.

However, the details of the package, as revealed by the finance minister, Nirmala Sitharaman, over the next few days, told a different story. The figure of ₹20 lakh crore included steps already announced by the government, what the people were owed anyway under existing schemes, money being offered as loans, and various other elements that should not have been counted as part of a “relief package.” Neither Modi nor Sitharaman revealed when the central government would release the enormous amounts it owes states as part of their share of the Goods and Services Tax.