Centre’s proposal made simple: Kerala Finance Minister Thomas Isaac on GST

Thomas Isaac, Finance Minister of Kerala :

  • Centre’s proposal made simple:
  • Total GST shortfall for 2020-21 ₹3Lcr.
  • Cess collection ₹0.7Lcr. Gap ₹2.3Lcr.
  • Centre to borrow ₹1.65 Lcr.
  • States to borrow ₹1.65Lcr for which state’s FD ceiling has to be raised by 25%.
  • But promised raise is only 17%.
  • Thus states will lose 0.5Lcr.
  • Centre’s 2nd proposal made simple:
  • Total GST Compensation Gap after Cess collection 2.7Lcr.
  • The entire amount to be borrowed by Sates for which state’s FD ceiling has to be raised by 1.5 percentage points.
  • But no assurance of exact raise to be permitted.

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