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“Economy shattered by PM & Covid,” Mr. Gandhi says in tweet
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 people as to why their Chief Ministers have been “mortgaging” their future for Prime Minister Narendra Modi.
In a tweet, Mr. Gandhi stated, “1. Centre promises GST revenue for States. 2. Economy shattered by PM & Covid. 3. PM gives (Rs) 1.4 lakh Crs tax cuts to Corporates, buys 2 planes for himself for (Rs) 8400 Crs. 4. Centre has no money to pay States 5. FM tells States- Borrow”.
“Why is your CM mortgaging your future for Modi?” he requested.
In August, the Centre gave two choices to the States to borrow both ₹97,000 crore from a particular window facilitated by the Reserve Bank of India or ₹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.
The Hindu Explains | What is the GST compensation due to States?
Following demand by some States, the quantity of ₹97,000 crore was elevated to ₹1.10 lakh crore.
As many as 21 States — that are largely BJP-ruled or have supported it on numerous points — have opted to borrow ₹1.10 lakh crore to meet the compensation shortfall.
The Centre has launched ₹20,000 crore to the States in the direction of the compensation shortfall to date within the present fiscal.
Under the GST construction, taxes are levied underneath 5, 12, 18 and 28 per cent slabs.
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