More states likely to write to FM today; Jharkhand rejects
Centre's proposal.
The
Opposition-ruled states are in a huddle over the Centre’s revised proposal to
meet goods
and services tax (GST) compensation shortfall.
While Jharkhand
has rejected the Centre’s proposal of borrowing partial GST shortfall of Rs 1.1
trillion and lending to states, Kerala Chief Minister Pinarayi Vijayan has
written to Union Finance Minister Nirmala
Sitharaman urging that the Centre should instead borrow Rs 1.83 trillion.
More states are expected to write to Sitharaman on Monday.
“I take this
opportunity to request for enhancing the limit under the special window
facility to Rs 1.83 trillion, from the suggested Rs 1.1 trillion,” Vijayan said
in his letter.
He requested
Sitharaman to hold further discussions on the matter to be resolved in an
“amicable manner”.
While the total
compensation due to the states is Rs 2.35 trillion, states would have got Rs
1.83 trillion in the normal course as compensation for 10 months is paid in a
fiscal year and that for the past two months is rolled over the early part of
next fiscal year.
According to Vijayan’s
letter, states will have to wait for another two years to get the balance
compensation of Rs 73,000 crore, according to the option given by the Centre.
“The additional
0.5 per cent borrowing without conditions, though welcome, cannot be treated as
a facility in lieu of the unpaid part of the compensation as the principal and
the interest of the borrowing has to be repaid by the states,” he said.
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