Hyderabad, Sept.1 (Hydnow): Telangana Chief Minister K Chandrasekhar Rao today expressed serious displeasure that the centre has advised the states to obtain loans towards GST compensation and cutting the funds. He demanded that the Centre has to release total GST compensation to the states which lost revenues due to corona crisis.
In a letter addressed to Prime Minister Narendra Modi, KCR has said that the centre instead of extending a helping hand to the states facing revenue loss and funds starved asking to make fresh loans.
Despite knowing of the loss due to GST, Telangana has extended support to the Centre he said. This was to protect federal spirit among the states and the Centre KCR said.
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We supported the GST expecting long term benefits and investments he said. Telangana state has suffered 83 percent revenue loss in April due to adverse effects of Covid -19 and lockdown, the Chief Minister informed.
As a result the state is facing financial problems and depending on loans towards expenditures and salaries he expressed concern. With deep sense of concern we urge the centre to review its decision suggesting the states to get fresh loans to match the GST compensation.
It is not correct fir the Centre to advise the states to get more loans he said. The Centre has to give total GST compensation due to the states, he demanded. The Centre has to release total compensation amount once in two months as per Act he said. During Corona crisis the Centre, has to offer additional funds as it has many options financially. He requested Prime Minister Modi to reverse the Centre’s decision and as an alternative, the Centre can borrow the entire shortfall amount based on the strength of the receipts into the Cess amount. He felt that the entire debt servicing – both principal and interest can be paid from the cess collected for such an extended period beyond 2022 which can be decided by the GST Council. (Hydnow)