New Delhi: Eight non-BJP-ruled states today rejected two proposals proposed by the central government to resolve the GST compensation dispute through debt. The chief ministers of all the states have written to Prime Minister Narendra Modi reminding him of the legal responsibilities of the four central governments. West Bengal Chief Minister Mamata Banerjee, Kerala’s Pinarayi Bijayan, Delhi’s Arvind Kejriwal, Tamil Nadu’s EK Palaniswami, Telangana’s K Chandrashekhar Rao and Chhattisgarh’s Bhupesh Baghel have proposed GST compensation. The Center offered two options for arranging the amount of compensation through loans. The chief ministers reminded Prime Minister Modi of his responsibility and said that if the states borrowed money, it would put additional pressure on their financial position during repayment. The chief ministers have proposed that the Center borrow on its own and continue to collect cess after 2022 if necessary. However, Karnataka Chief Minister BS Yeddyurappa has backed a Rs 4,000 crore loan proposal from the Center.
Non-BJP-ruled states are gearing up to surround the Center over the issue of GST compensation. Fighting between the center and the state is expected to intensify in the coming days. There are frequent allegations that the Center is misappropriating the powers that be with the states in various ways. It is also rumored to be a major threat to the country’s federal system. At the same time, disagreements between the Center and the state over the GST compensation could be a headache for the Modi government.
