In this episode of The Lead from DH Radio, Finance Minister of Kerala Thomas Isaac speaks about the stalemate between the Central government and the states over the GST compensation.
Ahmed Shariff: Hi and welcome to the Lead. The pandemic has caused havoc in the sphere of the economy. To bridge the shortfall in the GST compensation, the Centre had offered the states two options— Borrow the estimated cumulative amount of Rs 97,000 crore which doesn't account for the impact of the pandemic or borrow the entire shortfall estimated at Rs 2.35 Lakh crore.
The word Borrow is the key. And with the pandemic and its affects compounding by the day, the states are left in the lurch for funds. Some have demanded the Centre to borrow instead.
We are joined by Kerala's Finance Minister Thomas Issac to dwell deep into the situation. Hi Sir, welcome to DH Radio.
Thomas Issac: Hi. Thank you.
Ahmed: My first question to you is about the GST compensation, what should the Centre have done to avoid the stalemate?
Thomas Issac: The simplest case would have been that the Centre should have maintained the promised made to the states. They should have borrowed and provided compensation to the states. At least on four occasions, in the GST council, the empowered committee and parliament, this was the assurance given by none other than the Union finance minister then. That was the simplest option. Straight forward. now the Centre doesn't want to do that for whatever reasons...
To know more about the conversation, tune in to the podcast.
Published 12 October 2020, 01:48 IST