Centre To SC: Severe Strain On Finances; Beyond State’s Financial Ability To Pay Ex-Gratia To Covid Victims

WHAT DID THE CENTRE SAY

• The Union Government has told the Supreme Court that it is not feasible to provide ex-gratia compensation to all COVID 19 victims.
• The Central and State Governments are under fiscal strain due to fall in tax revenue and increased expenditure on healthcare facilities.
• Such ex-gratia payments would lessen the funds available for healthcare expenditure.
• The Ministry of Home Affairs has said that if the family of every deceased person is to be given a compensation of Rupees 4 Lakhs, the whole of the State Disaster Relief Fund would be exhausted.
• Moreover, it has been contended that the topic of ex-gratia payments must be dealt with by the ‘National Authority’ entrusted under the Disaster Management Act, 2005.

OTHER CONTENTIONS

• The MHA has also said that relying only on ex-gratia payments is a rather narrow and pedantic approach as help can also be provided via social protection and economic recovery.
• No proof of an existing precedent can be shown where ex-gratia payment is made for an ongoing disaster which has extended for months and would probably go on for a longer duration.
• Moreover, to grant ex-gratia for one disease while ignoring the people who have lost lives due to other severe diseases with higher mortality rates was discriminatory.

BACKGROUND

• The Supreme Court had directed the Central Government to produce records of guidelines pertaining to death certificates issued to COVID-19 patients, including those given by the Indian Council of Medical research (ICMR).
• Further, directions were given that schemes based on ex-gratia payments under Section 12 (3) of the Disaster Management Act were to be placed before the court.

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