Consolidated Fund

GST compensation cess states revenue, Centre can’t borrow against it: FinMin sources

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GST compensation cess states revenue, Centre can’t borrow against it: FinMin sources

The revenue accruing from GST compensation cess goes to the states and the Centre cannot borrow on the security of the tax which it does not own, Finance Ministry sources said. The Centre and opposition-ruled states are at loggerheads over the financing of the Rs 2.35 lakh crore GST shortfall in the current fiscal. Of … Read more

View: There’s a compelling case for Centre to borrow to meet states’ GST shortfall

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View: There’s a compelling case for Centre to borrow to meet states’ GST shortfall

The key is for the Centre to accept that states are at the frontline of this economic battle, and urgently need access to additional resources, not just compensation for inadequate cess collections. Synopsis Markets would see immediately that the risk of default of state governments, with such a large rise in their liabilities, would be … Read more