To meet shortfall in GST compensation, Telangana CM suggested that, Centre should borrow on the strength of receipts into Cess amount

Telangana CM Sri KCR, in a letter addressed to PM Narendra Modi ji, requested to reverse the Centre’s decision of asking the States to meet shortfall in GST compensation through borrowings and suggested that Centre should borrow on the strength of receipts into Cess amount.

CM stated that States are in the forefront of fighting the Covid-19 pandemic and reviving the economies and hence need more resources than the Centre.

Mentioned that Telangana suffered a revenue loss of 83% in April, whereas, expenditure due to fighting the pandemic increased.

Instead of fully compensating the States, the Centre had violated the provisions of GST Compensation Act by parking the surpluses of the Compensation Fund in its Consolidated Fund rather than parking them in the non-lapsable Compensation Fund for meeting its own expenditure.


CM urged the Prime Minister that strengthening the cooperative federalism is imperative to overcome the present crisis and to emerge as a strong nation.

CM added that strong States make the nation strong and hoped that GST Council decisions will be unanimous as before.

File Pic Courtesy CMO Telangana

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