Economy

Telangana opposes borrowing options

Our Bureau Hyderabad | Updated on October 05, 2020

Telangana Finance Minister T Harish Rao has opposed the two ‘borrowing options’ given by the Centre to the States. He asked the Centre to take care of GST compensation payouts to the States by borrowing funds itself.

Addressing the GST Council meet on Monday, he asserted that it was the right of the States to get compensation.

“The Centre should borrow and compensate the States. It should release funds from the ₹30,000 crore piled up through cess collections. Three instalments are pending in the last six months,” the Minister said.

Stating that the Centre remitted ₹24,000 crore of IGST funds for the financial year 2017-18 to the Consolidated Fund, he asked the government to release ₹2,638 crore that was due to Telangana.

He asked the Centre not to link the credit line opened under Atmanirbhar package with compensation payable for GST shortfalls.

A Finance Ministry official said: “With Telangana, West Bengal and Congress-ruled States opposing the two borrowing options and demanding the Government to pay the compensation, the GST Council meet ended today without taking any decision. The Council convened a meeting on October 12 to discuss the issue.”

Published on October 05, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor