‘Centre didn’t ask Tamil Nadu government to stop free electricity to farmers’

Chennai

She also cleared the air on the Rs 20 lakh crore economic package announced by the Modi government, how banks are collecting the EMI against the Reserve Bank’s recommendation and whether the Centre is planning to do away with free electricity for farmers, among other things. Excerpts:

Many people have questioned the Centre’s 20 lakh crore economic package saying the numbers don’t add up
Anyone can do the calculation. We are not hiding anything. We are taking measures to increase the money flow so that people can restart businesses. People are free to scrutinise the relief package, like whether it is coming from the government or the RBI...and it is their right. There is no secrecy involved.

To increase cash flow, is it possible for the Centre to distribute Rs 5,000 to each family?
We have announced the relief package after discussing with various departments, ministers and experts. When I said increasing the money supply, it means measures to help people borrow money to restart their business. Our relief package covers all, from roadside vendors to big-time businesses. They can borrow money to restart businesses and pay their employees, which will eventually increase the money supply.

Reserve Bank had announced that people don’t have to pay EMIs on loans for six months. But some banks keep on collecting dues from the public during lockdown...
Banks should not collect EMI (Equated Monthly Installment) from the people. I have read some media reports on banks collecting the dues. People can file complaints via e-mail, the address of which is available on the finance ministry website. If you have received any complaint, please forward it to us.

Centre has imposed several conditions to increase State’s borrowing limit from 3% of Gross State Domestic Product (GSDP) to 5%. But many states, including Tamil Nadu, have opposed it.
It’s their right to oppose. But to increase the borrowing limit, we have some conditions like implementing ‘One Nation, One Ration Card’ scheme, which benefits the people. Guest workers are most affected now. If the scheme had been implemented, it would have been a relief to them. States which implement the scheme can borrow extra 0.5 per cent. What’s wrong in such conditions?

But TN government, which is distributing 20 kg of rice to every cardholder, extends the same to guest workers, it would increase the State’s financial burden.
We have to talk about the Centre’s assistance to states while implementing One Nation, One Ration Card. People from TN working in other states will also benefit. And if the worry is increased financial burden on the State, we have to also consider the increase in productivity because of the participation of guest workers.

The Union government’s condition to end free electricity to the farmers and deposit the subsidy amount to the bank account have created a political storm in Tamil Nadu. Chief Minister Palaniswami, in a letter to the Centre, said the move would affect politically...
We didn’t say to stop the free electricity to the farmers. They can do so, but it should be systemically organised. Due to pending dues, Electricity board couldn’t pay back to the power distributing companies. If these companies decide not to distribute power, it is the farmers and the poor who would suffer. The situation rose recently and the Centre helped the power distributing companies by providing Rs 90,000 crore relief. The State can give free electricity to anyone, but it should also pay the bills. It can directly transfer the subsidy amount to farmers’ bank accounts or pay directly to the power distributing firms. We can discuss and implement it.

Former Finance Minister P Chidambaram said February month’s budget expectations have changed and a new budget should be introduced in June. Around 14 lakh crore additional loan should be borrowed and if the needed government should print currency...
We have listened to him. Many have given us suggestions and we have listened to all of them.