Finance Minister Sitharaman said- Center is not running from responsibility, GST Council will consider compensation for revenue loss
New Delhi. Finance Minister Nirmala Sitharaman amid allegations of opposition withdrawing from the Center's own responsibility on the issue of Goods and Services Tax (GST) compensation to statesOn Friday, the Lok Sabha said that the GST Council will find a way out considering the compensation issue. He clarified that there is no provision to recover this compensation from the Consolidated Fund of India. Responding to the discussion in the Lok Sabha on the Demands for Grants, the Finance Minister said that she will honor the promise made by her predecessor Finance Minister Arun Jaitley in terms of GST compensation payment. He said, "Even if we are in the current divine crisis, but how will we compensate the states, we will discuss this in the council. The council will look at how the loan can be taken to compensate the revenue." The Finance Minister, however, dismissed the shortfall to be offset by India's accumulated funds. He said that this payment should be from the Compensation Cess Fund.
Following Sitharaman's reply, the Lok Sabha approved the first batch of 'Supplementary Demands for Grants for the year 2020-21 and the related Appropriation Bill. Under this, approval was sought from Parliament for additional expenditure of Rs 2,35,852 crore. Nichhane House also approved the demands for additional grants for the year 2016-17. The Finance Minister said that the opposition should avoid spreading rumors, we are not withholding the money of the states even in the circumstances of Kovid-19. He said, "The Center is not backing away from its responsibility in terms of GST compensation to the states. There is no provision for giving GST compensation to the states from India's Consolidated Fund, This issue will be discussed in the GST Council itself. "The Finance Minister clarified that we are not considering raising tax rates to compensate for the loss in revenue due to Corona virus." During the current financial year, the GST revenue to the states is estimated to decrease by Rs 2.35 lakh crore. The Center believes that a reduction of Rs 97,000 crore will come from the implementation of GST, while the remaining Rs 1.38 lakh crore will be due to the impact of the covid-19 epidemic.
It is noteworthy that Chief Ministers of six non-BJP ruled states have written to the Central Government opposing the option of states borrowing from the market to offset GST. West Bengal, Kerala, Delhi, Telangana, Chhattisgarh and Tamil Nadu described it as a burden on the states. Sitharaman said, "There is no truth in such things that states are not being given their due share in the tax collected by the Center." 29 in central government tax collection. There has been a decline of 1 percent but the money has been released to the states in a vacuum. 'Reacting to the taunt of opposition parties regarding the MNREGA, the Finance Minister said that under the Demands for Grants, an additional 40 thousand crores for the MNREGA Have gone Apart from this, 61 thousand crores was allocated in this time budget. Overall, this time the amount for MNREGA has exceeded one lakh crore rupees. He said that the allocation of MNREGA continued to increase after the coming of our government. Sitharaman said that the country's foreign exchange reserves have reached more than $ 537 billion, which is enough for 19 months of imports. FDI has also increased, which indicates confidence in the economy. He criticized the criticism of his remarks that the Corona virus epidemic was called a 'divine event' (Act of God), while satire was done while everyone knows that there is no cure and a vaccine to deal with the corona virus problem. Has not developed. On the criticism of the fall in GDP, Sitharaman said that there are such situations all over the world.