Sushil Modi mentioned the Centre ought to discover funding choices to compensate the states. (FILE)
Patna:
Bihar Deputy Chief Minister Sushil Kumar Modi on Wednesday mentioned the central authorities is “morally certain” to compensate states for the income shortfall on account of low GST collections within the wake of the COVID-19 pandemic.
He mentioned the Centre ought to discover funding choices to compensate the states.
“It’s the dedication of the central authorities to compensate the states for the shortfall in GST collections. Its true that it’s legally not binding on the Centre, however morally, it’s,” Sushil Modi advised PTI.
He mentioned the Union authorities might both borrow from the market or grow to be guarantor on behalf of states in order that they’ll take loans.
The 41st assembly of the Items and Providers Tax (GST) Council is slated to be held on Thursday by way of video conferencing, and it has only one agenda for dialogue — making up for shortfall in states” revenues, sources mentioned.
Sushil Modi mentioned states must be compensated to the tune of Rs three.65 lakh crore within the present fiscal, out of which Bihar’s share is round Rs 12,000 crore for 2020-21.
Normally, states are paid from the ”Compensation Cess Fund” for the shortfall, however there’s a small sum left in that fund now, he added.
Earlier within the day, Congress president Sonia Gandhi mentioned “refusal” by the Centre to pay GST compensation to the states is nothing in need of a betrayal of the belief of the folks of India.
(This story has not been edited by NDTV workers and is auto-generated from a syndicated feed.)
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