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Kerala Finance Minister KN Balagopal met Union Finance Minister Nirmala Sitharaman here on Thursday and demanded her to release ₹4,524 crore GST compensation which is due to the State. He asked the Centre to extend the compensation term for five more years.
Balagopal said such an assistance is urgently needed for the State as it faces severe economic crisis due to the ongoing pandemic situation. He said Sitharaman has told him that she will consider the demands. “The Union Finance Minister agreed that all the States are going through a tough time. She promised that she will help,” Balagopal said.
Another demand Balagopal made to the Centre is increasing the borrowing limit of the States to five per cent of the State GDP. “Covid has put farmers, small traders and workers to deep distress. Traditional industries in Kerala such as cashew and coir are facing problems. Unemployment is high in these sectors. We need urgent assistance from the Centre,” he added.
On GST system, he said, it is not proper to dismantle it, but the Centre should ensure that the system functions properly. “If it is not functioning properly and the if the interests of States are not protected, it will weaken the GST,” he said.
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