Oppn demands fiscal autonomy to states

The entire Opposition expressed apprehension over the “weakening” of states’ rights of raising financial resources after the GST regime comes into existence.

The Left and others demanded an assurance from the government that the fiscal autonomy of states will be protected. Former finance minister P Chidambaram also pleaded for a robust dispute resolution mechanism in place to resolve disputes between the Centre and states.

“When the GST comes, ensure that there will be flexibility so that states are not forced to come with begging bowls to ask for money,” said CPM leader Sitaram Yechury, participating in the debate over the Constitution Amendment Bill in the Rajya Sabha. “Some flexibility should be given to the states. I demand an assurance on this issue,” Yechury said.

He also demanded that the tax collected by the state for the state GST should go to the Consolidated Fund of the state. “This presents a problem. Where does the revenue go? That is an important aspect, which should be clarified,” he said.
“What is the mechanism and the timeframe within which the revenue will be shared with the states and Centre?” he asked.

CPI leader D Raja demanded that in the GST council three-fourths of the members should be from the states and the remaning from the Centre to ensure “fiscal federalism”. BSP’s Satish Chandra Mishra said the council vice chairman should be inducted from a party that is not a part of the ruling party at the Centre.