India stares at Rs 10 lakh crore revenue loss as Covid-19 tally crosses 2.76 lakh

India is staring at Rs 10 lakh crore revenue loss due to the Covid-19 outbreak even as the country’s economy opens up amid looming risk of the deadly virus.

Union minister Nitin Gadkari on Wednesday said that India is expected to lose revenue of Rs 10 lakh crore due to the coronavirus crisis. He said that the situation was so grim that some states do not have money to pay salaries next month.

Meanwhile, S&P Global Ratings has forecast that India’s economy to shrink by 5 per cent in the current fiscal. It, however, has projected GDP growth to be 8.5 per cent in 2021-22 and 6.5 per cent in 2022-23.

India’s problems are compounded as even though the government has decided to reopen the economy to cap the financial bloodshed caused by the extended lockdown, several states may have to reimpose it to curb the Covid-19 outbreak.

The total number of cases in India registered a jump of 9,985 on Wednesday, taking the nationwide tally to 2.76 lakh. Delhi and Mumbai – the country’s political and financial capitals – registered over 1,500 fresh cases within a day. While the Delhi government said it expects the city tally to breach 1.5 lakh by July 31, Maharashtra CM has warned that if people failed to follow rules, he will have to reimpose the lockdown.

Also read | Coronavirus: Widespread mask-wearing could prevent Covid-19 second waves, study shows

Rs 10 lakh crore revenue loss

Union minister Nitin Gadkari on Wednesday said that the country is expected to lose revenue of Rs 10 lakh crore or 5 per cent of India’s GDP due to the coronavirus crisis. Addressing the BJP’s Jan Samvad virtual rally here through video link from Nagpur, the situation was so grim that some states do not have money to pay salaries next month.

“The Indian government’s revenue has been hit. We have a GDP of Rs 200 lakh crore. Ten per cent of it, around 20 lakh crore package, has gone to industries, farmers…,” Gadkari said referring to the stimulus package announced last month. “There will be around Rs 10 lakh crore revenue receipt deficit. So if with Rs 200 lakh crore (GDP), Rs 30 lakh crore go this way, (one can imagine) what serious situation it will lead to,” the senior BJP leader said.

But the minister for Micro, Small and Medium Enterprises said the situation will have to be dealt with positivity, “All of us are facing a tough time. We are facing a crisis. We cannot face it with negativity, frustration and fear. We have to fight the coronavirus with self-confidence and…

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