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GST Council meeting today, test for cooperative federalism

October 05, 2020 09:43 AM

- 10 states, including Punjab and Kerala, have not opted for the Centre's borrowing option

New Delhi, October 4
The GST Council meeting on Monday will be a test for cooperative federalism as 10 states, including Punjab and Kerala, have not opted for the Centre's borrowing option. Twenty-one state and UTs, on the other hand, have accepted the arrangement offered by Union Finance Minister Nirmala Sitharaman.

The pandemic has affected states, increasing their dependence on GST compensation as against internal revenue generation. The situation is particularly dire for Punjab, Himachal Pradesh, Uttarakhand and Chhattisgarh.

At the last GST Council meeting on August 27, the Centre gave two options: Borrow Rs97, 000 crore from a special RBI window or lift the entire Rs2.35 lakh crore from the market
The CMs or Finance Ministers of Punjab, West Bengal, Kerala, Delhi, Telangana, Chhattisgarh and Tamil Nadu have already opposed both options
- agencies

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