P Chidambaram says central authorities is passing the buck of monetary burden. (File)
New Delhi:
Senior Congress chief P Chidambaram urged states to reject choices given to them by the Centre over the GST compensation challenge and demand cash in a single voice.
His remarks come a day after the federal government requested states to borrow extra to make up for income losses on account of pending GST dues. “States should reject each choices and demand, in a single voice, that the Centre should discover the assets and supply the cash to the States,” P Chidambaram tweeted.
“The 2 choices given by the Modi authorities to the States to bridge the GST Compensation hole is a gross violation of the legislation and an abdication of the duty of the central authorities,” he mentioned.
He claimed that in both choice, the central authorities is passing the buck of monetary burden to the states.
Beneath the legislation, the duty to compensate the states falls solely on the central authorities, the senior Congress chief famous.
“The newest assault on the States is a part of an elaborate design of the Modi authorities to financially cripple the States and cut back them to beg for cash from the Centre,” P Chidambaram claimed.
Amid a refrain by non-NDA dominated states for compensation of GST income shortfall, the Centre on Thursday throughout the GST Council assembly advised states that the estimated deficit of Rs 2.35 lakh crore this fiscal 12 months could be made good by borrowing from the market towards future tax revenues.
On the finish of a five-hour lengthy assembly of the GST Council, Union Finance Minister Nirmala Sitharaman mentioned there was no proposal to boost tax charges to make up for the shortfall that has been compounded by the COVID-19 pandemic hitting financial exercise.
Citing a authorized opinion from the lawyer basic, she dominated out the Centre making good the shortfall from both its coffers or by borrowing on its stability sheet.
The Centre additionally made a distinction between income misplaced on account of implementation of the GST and the financial slowdown arising out of the COVID-19 disaster.
The federal government mentioned its authorized obligation was solely to compensate states for losses arising out of the GST rollout.
(Aside from the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)
Source link
