With a month left for presentation of the fourth budget of Modi 2.0 government, Finance Minister Nirmala Sitharaman held pre-budget consultations with the state finance ministers on Thursday. Many of the ministers, including chief ministers who hold the finance portfolio, urged Sitharaman to relook at the GST compensation period and higher taxes on certain items.
“Most of the participants thanked the Union finance minister for financially supporting their states during the worst months of pandemic, by enhancing borrowing limits, providing back to back loans to states, and through special assistance for capital expenditure,” a finance ministry statement said.
The state finance ministers also gave suggestions for inclusion in the budget speech.
According to sources, Chhattisgarh CM Bhupesh Baghel, who holds the finance portfolio, asked the Centre to release GST compensation deposited on account of coal mining and asked the Centre to compensate the expenditure on fighting naxals.
Several finance ministers including Kerala's K.N. Balagopal and Tamil Nadu's P. Thiaga Rajan are learnt to have asked Sitharaman to extend the period of GST compensation for five more years. Rajan also urged the Centre to release the dues pending with them.
The states also asked additional expenditure to ramp up the health infrastructure in view of raging pandemic and newer threats. They also demanded assistance packages to stimulate economy.
