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Virus-ravaged states clamor for more funds from Modi

This week India surpassed Russia to become the third worst-hit country with more than 740,000 Covid-19 infections. The surging virus numbers have all but overwhelmed the public health system, which the states are responsible for. It’s also piling on pressure on local governments at a time when they’re scrambling to restart economic activity. The country’s sudden lockdown -- imposed without consulting state governments -- shattered the already troubled economy. All non-essential activity stalled and state tax collections fell sharply, pushing local governments to ask the federal government for funds in order to avoid racking up debt. The money crunch is putting everything -- from the salaries of government employees to their ability to fight the virus -- at risk.

The Economic Times - July 9, 2020

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