Chief Minister of the state Vijay Rupani has decided to constitute a committee to deliberate on economic revival measures including fiscal restructuring; under post COVID-19 pandemic scenario and provide comprehensive suggestions.
The committee will have experts form diverse economic fields to deliberate on the aforesaid measures. The 6 member committee will be headed by Dr. Hasmukh Adhia, Former Finance Secretary, Government of India. Other members of the committee include Prof. Ravindra Dholakiya, Ex-Professor, IIM-A; Mukesh Patel, Senior Tax Consultant; Pradeep Shah, Financial Expert; Kirit Shelat, IAS(Retd.) and M.Thennarasan, VC and MD, GIDC, Government of Gujarat.
It is to be noted here that the state government headed by the Chief Minister has taken a number of welfare measures in areas of food security, healthcare and sector specific activities. However, the COVID-19 pandemic has affected the state and its economy to a large extent. The demand and supply chain have been crippled and the informal sector and the MSMEs have taken a major blow. Gujarat has a large migrant workforce. However, the pandemic has compelled them to return to their respective home states. The disruption caused by COVID-19 has affected an industrially developed state like Gujarat, which has in turn affected the nation too.
The committee headed by Dr. Adhia will submit a comprehensive action plan with necessary inputs within one month and an interim report will be submitted within two weeks. The committee will assess sectoral and sub-sectoral losses and provide necessary measures for revival. The committee will also review the fiscal status and budgetary position of Gujarat and provide suitable suggestions for improvement. This will include revising and revision of fiscal deficit estimate and the current tax administration in the post COVID-19 scenario.
In addition to that, it will analyse the availability of labour and provide necessary recommendations to improve labour availability in the state considering a large scale movement of migrant workers to their respective home states amidst the pandemic. Further, it will devise a strategy to create an ambient environment to attract foreign companies looking to relocate their base from other countries. It will also provide a comprehensive action plan (immediate, medium term and long term) for economic and fiscal revival.