Thomas Issac said that centre should have focussed on giving a package to the poor.
Kerala Finance Minister Thomas Isaac said that he was "disappointed" with the first set of measures announced by the Finance Minister Nirmala Sitharaman, adding that the minister "forgot basic constraint in the economy" by focussing on the MSME sector instead of allocating funds for the poor.
"I am disappointed. The minister forgets that the basic constraint in the economy today is lack of demand. Starting first with stimulus for MSME sector is like putting cart before the horse. And ask anyone in the MSME sector - they have two demands. One, moratorium needs to be extended for one year. Two, they need interest to be waved. And that is something Centre and States both can partner in doing," Mr Isaac told NDTV.
Collateral-free automatic loan worth 3 lakh crore for MSMEs, the bar on global tenders upto Rs 200 crore, a reduction in the employers' contribution for Employees Provident Fund, Rs 90,000 crore one-time Infusion of liquidity for discoms and an extension of upto six months for contractors working with the Central government were among the major announcements in the first tranche of the Rs 20 lakh crore fiscal stimulus announced by Ms Sitharaman on Wednesday.
What is the point of talking of the package which has given nothing for the workers, he said.
"The first priority has to be giving out 1/3rd of the allocated funds to the poor in the country. The migrants, unemployed, farmers and others. Once that is done, MSME sector can be focused on", state finance minister said.
The minister said that centre should provide money to states so that they can arrange adequate facilities for migrants who are bound home. Kerala, which is expecting around five lakh people, has a revenue deficit of its own taxes at around 85 per cent.
"First, straight give 1/3rd of funds to the poor; support states", says 'disappointed' Kerala Finance Minister
"This is what I have against the Centre. The states have to be a priority. How do we fight this pandemic? By next month we are expecting around 5 lakh people to return to the state. We have to ensure they can be quarantined. Where is the money. Even if I force all hotels, still, the cost per person will at least be 200 rupees. But states, till now, have not found any mention from the Centre", Mr Isaac told NDTV.
As of date, around 40,000 people have returned to Kerala. The first set of people travelling through special trains services will reach on May 15th.
"The central governement has to respect us for what we are doing; we are doing really well. It takes a lot of money to do the job well on the ground", Thomas Isaac said.
The Rs 20 lakh crore stimulus package, the largest so far among developing countries, was announced by Prime Minister Narendra Modi on Tuesday to revive the India's economy, which has been severely hit by the lockdown.
The mega Rs 20 lakh crore stimulus package, which is 10 per cent of the country's GDP, includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing.
With inputs from agencies