FM has assured to clear GST dues: Bommai

Home Minister Basavaraj Bommai on Friday said Union Finance Minister Nirmala Sitharaman assured him that the Centre would release Rs 11,800 crore GST compensation pending from last year to Karnataka.

Bommai, who represents Karnataka in the GST Council, said this after meeting Sitharaman who was in the city.

"Sitharaman also assured that the Centre would borrow Rs 18,000 crore and give it to the state as GST compensation, just like it did last time," Bommai said in a statement.

Bommai said he asked Sitharaman to release the first instalment of the state's share in the GST collected in the first quarter of the current fiscal.

During their meeting, Bommai said he asked Sitharaman to release the Centre's share of money towards centrally-sponsored schemes, to which she agreed.

The two also discussed the feared third wave of Covid-19. "She gave an assurance that the Centre would make sure there's no paucity of funds to tackle the pandemic," Bommai said.