New Delhi: With the GST council meeting scheduled for next Thursday, four central governments have already taken steps to make the states happy. Efforts will be made to avoid further confrontation in this regard. We will provide all the states with GST compensation. It is alleged that the ambassador provided the information to Hussein.
This year, it is estimated that there will be a shortfall of Rs 2.35 lakh crore in GST compensation. Of this, Rs 4,000 crore will be given to the states soon. The remaining amount will be disbursed as agreed by both the Center and the state. The central government is considering paying the remaining amount slightly. An official who played a key role in the GS6 compensation issue appears to have given such information. Last May, Finance Minister Nirmala Sitharaman said, “We will respect the GST (Compensation to States) Act, 2019, until it comes into force.” The official reiterated that. The official held lengthy three-hour talks with state finance secretaries last week. Tried to explain to them the real situation. According to the latest information, the central government wants the states to borrow on their own. This is because if the Center lends itself to the states and pays the GST compensation to the states, the interest rate on everyone in the debt market will increase. The central government does not want to take such a step, encouraging companies to improve the economy and boost investment, which has been severely affected by the corona infection. The federal government wants to make it easier for states to get loans. A special provision will be made for them in the Reserve Bank. From there, states can borrow at low interest rates. The payment will be added to the Sess collection. The states will repay the debt at the rate at which the Sess is levied. As a result, it will not affect their budgets, the central government said.
