Senior Congress chief P Chidambaram on Thursday took a dig on the Centre over the Rs 78,704 crore it owes to the states in GST compensation, saying it will be fascinating to know why the Finance Ministry “embarrassed” Prime Minister Narendra Modi by placing out the data on the day he selected to “admonish” the states.
The Finance Ministry on Wednesday mentioned the Centre has already launched eight months of GST compensation dues to the states for the fiscal ended March 2022 and Rs 78,704 crore is pending on account of insufficient stability within the cess fund. On the day the prime minister exhorted states to chop the VAT charge on petrol and diesel, the Finance Ministry introduced that the Centre owes Rs 78,704 crore to the states, Chidambaram mentioned.
“The amount owed is actually more. If you add the amounts that the states claim are owed to them, the total amount may be bigger. Only the Controller of Government Accounts (CGA) can certify the correct amount,” the previous finance minister mentioned on Twitter.”It can be fascinating to know why the MoF embarrassed the PM on the day he selected to admonish the States!” he mentioned.
Flagging greater gas costs in lots of opposition-ruled states, Prime Minister Modi on Wednesday known as it “injustice” to individuals residing there and urged the governments there to cut back VAT in “national interest” to profit the widespread man. Modi raised the problem of many states not adhering to the Centre’s name for decreasing the Value Added Tax (VAT) on petrol and diesel after his authorities slashed excise duties on them in November final, and requested them to work within the spirit of cooperative federalism on this time of worldwide disaster.
Source: www.financialexpress.com”