Delhi Deputy Chief Minister Manish Sisodia Thursday said that under the existing system, the city government cannot take a loan from the RBI to meet its revenue shortfall.
Emerging out of a GST Council meeting, he said the Centre has refused to pay GST compensation to states and asked them to take a loan from the RBI to meet their revenue shortfall due to the coronavirus pandemic.
“However, under the current hybrid system (of governance), the Delhi government cannot take a loan from the RBI. The Centre should take a loan from the RBI and give it to the Delhi government," he said.
Sisodia also charged the Centre with failing to fulfil its promise to the states at the launch of the Goods and Services Tax (GST) regime four years ago.
"The Centre had promised that it will pay GST compensation to states at the rate of 14 per cent for five years in case of a revenue shortfall. But, today at the GST Council meeting, the Centre refused it, saying there was no provision for compensation in situations like a pandemic," Sisodia said in a briefing.
The Delhi government is expected to have a revenue shortfall of around Rs 21,000 crore in the current financial year, Sisodia said.