March 28, 2020 4:16 PM

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Tamil Nadu CM seeks special grant for state govts to combat Covid-19, its aftermath

<span style="color: #222222;">Tamil Nadu Chief Minister Edappadi Palaniswamy has sought one lakh crore rupees as special grant to the state governments to combat the Covid-19 virus and its aftermath.<br />''<br />''In a letter to Prime Minister Narendra Modi today, he has said Tamil Nadu should in this way be given a grant of 9000-crore rupees. He has said the grant needs to be over and above the other forms of financial transfers as envisaged in the Union Budget and can be financed by the Union Government borrowing from the RBI. He has pointed out that under the country's public finance system, in any eventuality, only the Union Government can borrow from the Reserve Bank of India. He has emphasized that the economic impact of the lockdown is likely to be very severe and unprecedented. He has called for setting aside the conventional economic doctrines and for taking extraordinary measures to ensure that the economy is revived and reinvigorated.</span><br />

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