‘Revival package or recycled package?’

In Khedut Vani’s latest issue, economist Hemant Shah said that Gujarat govt’s economy revival package is a hogwash as it has only recycled the 2020-21 State Budget and does not accord new monetary benefi ts

Gujarat government may be chest-thumping about its Rs 14,022 cr package to boost the state’s economy and resuscitate businesses hit hard by lockdown, but city-based economist has called the announcement a hogwash. Professor Hemant Shah said the new package is a recycled one aimed at misleading the citizens as majority of the financial schemes and benefits accorded were part of Gujarat government’s budgetary allocation for 2020-21.

In the June issue of Khedut Vani, a newsletter, Shah has stated the package announced by an expert committee led by retired IAS Hasmukh Adhiya doesn’t have any new financial allocation. “This so-called package will not deliver any new monetary benefits apart from grains and various ongoing monetary schemes to Gujarat’s 88% or 6.10 cr people,” wrote Shah.

For example, this year’s budget made a provision of Rs 3,120cr for various industries. In the special package, Rs 1,838 cr booster subsidy has been provided. “There is no clarity if subsidy is provided on the new loans or loans already taken. So, there is no clarity on whether the provision in the package is different from those made in the budget,” he said.

Other points include Rs 460.59 crore allocation for GIDC but the question is how will GIDC work without workers? Shah has stated that Rs 1,190 crore relief has been announced for agriculture, animal husbandry and fisheries. The government has stated that Rs 400 crore has been allocated for interest-free loan in the special package and Rs 1,000cr in budget this year. “Has it been reduced to Rs 400 cr?” he asked.

Similarly, through Mukhya Mantri

Utkarsh Yojna, 10 lakh women will be provided interest-free loan for which Rs 200 crore has been allocated. However, this year’s budget has Rs 193 crore allocation for the same. “So what is new? Just an increase of Rs 7 crore in the special package? However, the budget also had provision of Rs 7 crore for Gram Nirbhar Yojna. Besides, Rs 56 crore for construction labour is a deceit as Rs 2,820 crore was already there in their welfare board and not utilised,” the newsletter mentions. Shah added the old announcement of Rs 4,675.68 crore expenditure for free grains and pension is included in the special package.

Deputy CM Nitin Patel did not respond to calls made by Mirror. Sagar Rabari, President of Khedut Ekta Manch, said, “Farmers have been getting 0% loan for the past three years now. This too has been mentioned in the special budget. Also, provision for animal husbandry and fisheries was made by Union Finance Minister Nirmala Sitharaman in the Union Budget. She too mentioned it in a special package announced by the central government.”