State Government Current Affairs - 2020

Finance Commission: States shall use FRBM clause to fight COVID-19

On April 24, 2020, the Finance Commission has advised the state governments to use the clauses of FRBM (Fiscal Responsibility) act in order to raise additional resources to fight against COVID-19.

Centre and State FRBM

The states have their own FRBM act. The main similarities between the centre and state FRBM is that the limit of fiscal deficit is 3% and the governments can raise the deficit up to 50 basis points. The State governments have been advised to use this clause. With this permissible amount of fiscal deficit, the state governments will have funds in hand.

Issues identified by the Finance Commission

The Finance Commission has identified the following possible issues during the meeting with its advisory council

  • The small-scale industries were cash starved even before COVID-19 crisis. Therefore, the commission suggests a support mechanism to help solve cash flow problems.
  • The Commission also suggests measures to avoid bankruptcies. It suggests partial loan guarantee.
  • The pace of revival in different state may vary differently. Therefore, an adequate provision to help governments manage cash flows is important.

Delhi Government announces 5T plan to control COVID-19

On April 7, 2020, the Government of Delhi announced 5T plan to tackle the spread of Corona Virus in the Union Territory. The 5T plan includes Testing, Tracing, Teamwork, Treatment and Tracking

Testing

Under the Testing Programme, the government is to conduct 1 lakh rapid tests in hotspot areas of Delhi. The current hotspot areas of Delhi include Garden, Dilshad and Nizamuddin

Tracing

Under the Tracing programme, the government is to identify the people who have come in contact with the COVID-19 positive patients. The identified persons will be quarantined. In order to achieve the tracing programme, the government is to get help from Delhi Police

Treatment

Around 2,950 beds have been reserved exclusively for COVID-19 positive patients. Apart from this, beds in private hospitals have been identified to treat COVID-19 positive patients alone. More than 12,000 hotel rooms are to be taken over.

Teamwork

The State will work with centre in this programme. The technology professionals, doctors and nurses are the main members of this programme.

Tracking and Monitoring

Under this programme, the government will actively monitor the step being taken in implementing the 5T programme. And also will take actions to contain the spread of the virus.