Chidambaram lauds 6 states for rejecting Centre’s GST proposal

New Delhi, September 1

Congress chief P Chidambaram on Tuesday lauded the finance ministers of six states for rejecting the Central authorities’s proposals for bridging the GST compensation hole.

He stated the states shouldn’t permit the Centre to evade its authorized and ethical duty to compensate them for the income shortfall.

“Congratulations to the finance ministers of Punjab, Chhattisgarh, Kerala, West Bengal, Telangana and Delhi for rejecting the bogus twin options given by the central government to bridge the GST Compensation gap,” he stated on Twitter.

The former Union finance minister stated so far as he is aware of, Rajasthan and Puducherry have additionally rejected the 2 choices.

“Happy that Tamil Nadu has also rejected the two options,” he stated.

“The States must not allow the Centre to evade its legal and moral responsibility to compensate the States for the revenue shortfall. The financial burden of additional borrowing must be borne by the Centre,” he stated.

As many as seven non-BJP dominated states and Union Territory Puducherry on Monday rejected the Centre’s suggestion that the states borrow to make up for the GST shortfall, saying the constitutional legal responsibility to fill the hole lies with the Union authorities.

At an off-the-cuff assembly on Monday, six non-BJP dominated states—Punjab, West Bengal, Kerala, Delhi, Chhattisgarh and Telangana—felt that an alternate mechanism must be labored out to compensate the GST income shortfall.

Besides, Congress-ruled Rajasthan and Puducherry too stated they may comply with go well with on the problem of compensation. PTI


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