Amit Mitra writes to FM, reiterates demand to release over `5,000 cr to fight pandemic

Kolkata: The state government has urged the Centre to release over Rs 5,000 crore in three equal instalments as part of the Revenue Deficit Grant.

In a letter to Union Finance minister Nirmala Sitharaman, state Finance minister Amit Mitra, wrote: "I urge you to release the entire sum of Revenue Deficit Grant provided by the 15th Finance Commission to State of West Bengal of Rs 5,013 crore in three instalments, each of Rs 1,671 crore for the month of April, May and June of 2020."

He further added that the state "is dismayed as the Centre has released only an amount of Rs 417 crore for the month of April in a routine manner without considering the unprecedented COVID-19 situation".

Earlier, Chief Minister Mamata Banerjee had also urged the Centre to release a special grant to fight the pandemic.

Stating it to be disappointing at this critical hour, Mitra said the sum is needed to fight the COVID-19 situation and disburse committed expenditures.

"Furthermore, I had also requested for a moratorium on loan repayment, etc, relating to the serious problem of debt management," Mitra wrote.

He also mentioned about earlier letters that the Chief Minister had written to Prime Minister Narendra Modi to allow the states to borrow more by raising the Fiscal Responsibility and Budget Management (FRBM) limits to at least 5 per cent of their GDP during 2020-21 fiscal in the wake of the COVID-19 outbreak.