Tribune News Service
Chandigarh, February 20
Chief Minister Captain Amarinder Singh requested the Central Government to release the pending amount of GST compensation to the state, amounting to Rs 8,253 crore for the period April 2020 to January 2021.
The Chief Minister reiterated the state’s demand for releasing the GST compensation on a monthly basis in the coming fiscal year, and sought extension in the period of GST compensation beyond the current five years for states namely Punjab, which have permanently lost a significant portion of their revenue especially on account of subsuming of Purchase Tax on food grains, and are staring at a huge revenue shortfall after the end of compensation period.
The Chief Minister said the practice of direct transfer of funds under certain Central Schemes to the implementing agencies, by-passing the consolidated fund of the state, not only violates the provisions of the Constitution but is also against the spirit of cooperative federalism.
Also read: ‘Consult state in fixing COVID vaccine priorities’, Punjab CM Amarinder requests centre
Capt Amarinder urges PM to ensure urgent resolution of farmers’ stir
“The Government of India is, hence, requested to route all funds pursuant to Central Schemes only through the consolidated fund of the state, thereby allowing states to monitor the effective implementation of these projects with greater financial accountability and transparency,” he said.
Pointing out that the 15th Finance Commission in the final report for the FY 2021-22 to 2025-26, has recommended certain sector-specific and state-specific grants for the state of Punjab, amounting to Rs 3,442 crore and Rs 1,545 crore, respectively.
However, these had still not been cleared by the Centre, he regretted, urging the Centre to provide these specific grants to the state creation of necessary infrastructure and provide the much-needed impetus to its economy.
Release pending GST compensation, extend period beyond 5 yrs: Capt Amarinder to Centre
{$excerpt:n}
