Rajasthan Govt Urges Centre Compensate States Revenue Deficit Due To Low GST Collections

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The Rajasthan government on Monday suggested to the Centre that the states be compensated the revenue deficit resulting from lower than expected GST collections due to coronavirus pandemic and economic slowdown. Local Self Government Department Minister Shanti Dhariwal gave the suggestion in a pre-budget consultation meeting with Union Minister of Finance Nirmala Sitharaman, who discussed the budget for the next financial year with the finance ministers of various states.

Jaipur, Jan 18: The Rajasthan government on Monday suggested to the Centre that the states be compensated the revenue deficit resulting from lower than expected GST collections due to coronavirus pandemic and economic slowdown. Local Self Government Department Minister Shanti Dhariwal gave the suggestion in a pre-budget consultation meeting with Union Minister of Finance Nirmala Sitharaman, who discussed the budget for the next financial year with the finance ministers of various states.

Dhariwal suggested that the Union government had promised to compensate the revenue deficit due to the GST collection falling below the expected level due to the coronavirus epidemic and the economic slowdown till June 2022, which should be extended till June 2027. According to an official statement, Dhariwal said that despite limited financial resources, the Rajasthan government made every effort to combat the pandemic.

He said that in the next financial year (2021-22), the three per cent credit limit would not be sufficient for the state in view of the necessary financial resources. Dhariwal said in the meeting that the 32 per cent of the states’ share in central taxes was increased to 42 per cent but the grants and planning assistance received by the states have all been included in this 42 per cent category.

Also, the share of central government which was 75 per cent in centrally sponsored schemes was reduced to 50 per cent. This is putting additional financial burden on the states and hence it should be increased to 75 per cent again, he said. Dhariwal demanded increase in royalty rates of minerals, which has not been increased for more than four years. He also suggested to reduced import duty from 7.50 per cent to 2.50 per cent on gold and silver jewelery, precious and semi-precious jewelery made in the country.

He said the Rajasthan government has passed three bills in the interest of farmers. On the same lines, three agricultural laws made by the central government should be revisited so that dissatisfaction spread among the farmers can be out to rest.

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