Congress chief Rahul Gandhi on Monday took a jibe on the state governments which have agreed to the Centre’s borrowing proposal on the GST compensation difficulty and requested folks as to why their chief ministers have been “mortgaging” their future for Prime Minister Narendra Modi.
In a tweet, Gandhi mentioned, “1. Centre guarantees GST income for States. 2. Financial system shattered by PM & Covid. three. PM provides (Rs) 1.four lakh Crs tax cuts to Corporates, buys 2 planes for himself for (Rs) 8400 Crs. four. Centre has no cash to pay States 5. FM tells States- Borrow.”
“Why is your CM mortgaging your future for Modi?” Gandhi requested.
In August, the Centre gave two choices to the states to borrow both Rs 97,000 crore from a particular window facilitated by the Reserve Financial institution of India or Rs 2.35 lakh crore from the market. It had additionally proposed extending the compensation cess levied on luxurious, demerit and sin items past 2022 to repay the borrowing.
Following demand by some states, the quantity of Rs 97,000 crore was elevated to Rs 1.10 lakh crore. As many as 21 states — that are principally BJP-ruled or have supported it on varied points — have opted to borrow Rs 1.10 lakh crore to fulfill the compensation shortfall.
The Centre has launched Rs 20,000 crore to the states in direction of the compensation shortfall thus far within the present fiscal. Below the GST construction, taxes are levied beneath 5, 12, 18 and 28 per cent slabs.