The GST collection in India is continuously decreasing. Due to this, the difficulties of the central government are increasing continuously. Due to the corona virus, government spending has increased more. On the other hand, there is also a huge decline in tax collection. In such a situation, now the Central Government does not have much option left to run India’s economy.
At the same time, experts say that in the coming time, the central government can borrow from abroad. In the past too, the central government has borrowed heavily from abroad. In such a situation, the pressure on the Indian economy will be increased by taking a new loan.
GST collection reduced again
The problem before the central government is about the GST collection. According to the latest data released this month, GST collections have also seen a decline. Although lower than the earlier decline. But still the difficulties in front of the central government are increasing. The central government was expecting an increase in elections this time. Which does not seem to be fulfilled.
The GST collection for the month of August was 86 thousand 449 crore. Which is 15% less than the GST collection for the month of August last year.
If we talk about last month’s GST collection, it was about 88 thousand crores rupees. However, this decline is less. But still it is definitely a problem for the central government. The central government has set a target of Rs 1 lakh crore for GST collection. Which does not seem to be completed far and wide. At the same time, the state government is constantly demanding GST compensation. It has added to the difficulties of the central government.
5 non BJP ruled states wrote to the Prime Minister
Has written a letter to the central government in 5 non BJP ruled states. And has asked the state governments to release part of the money of GST. These state governments say that the revenue of state governments has reduced due to lock down. The same corona virus is costing the state governments extra. In such a situation, economic pressure is increasing on the state governments.
These state governments include Delhi, Tamil Nadu, Telangana Kerala and Chhattisgarh.
These non-BJP-ruled state governments say that, while implementing GST, the central government promised to compensate the deficit. But now the central government seems to be backtracking on its promise.
State governments rejected suggestions for taking loan
The Narendra Modi government at the Center expressed its inability to pay its outstanding money to the state governments when the GST collection decreased. Finance Minister Nirmala Sitharaman had said that due to coronavirus, the central government does not have money to give to the state governments.
In such a situation, the central government had proposed to take loans before the states. In response to this, non-BJP ruled states have refused to take more loans. The state government says that their financial collection is continuously decreasing. On the other hand, taking loans will increase their financial burden.
These non-BJP ruled states say that the central government should borrow. And the state should pay the outstanding GST collection money.
Arvind Kejriwal said that rating agencies do not matter whether the central government has taken the loan or the state government. Rating agencies look at how much debt a country has taken. And based on this, rating agencies issue ratings to countries based on their financial status.
The Central Government while giving the option of borrowing to the State Governments had said that the State can borrow 135000 crores of the share of Government GST from RBI. We are talking to the RBI about this.
Central government should pay dues to state governments
The non-BJP ruled states include Delhi Punjab Chhattisgarh and Kerala. These states say that the central government should pay the states dues from the share of GST collection. The state government says that 235000 crore rupees have been owed to the central government. In such a situation, if the Central Government does not pay the GST collection dues of the states early, then it will be difficult for them to pay salaries to the employees. In such a situation, it is considered certain to present a financial crisis in front of the state governments.
A meeting was held by 4 state governments regarding the arrears of GST collection. This meeting was Chief Minister level. It was attended by Arvind Kejriwal Bhupesh Singh Vaghela Panil Oswamy and Telangana Chief Minister K Chandrasekhar Rao.
Together these state governments said in unison that we reject the state central government’s proposal to borrow from the Reserve Bank of India. These states say that instead of the state governments from the Reserve Bank of India, the central government should repay the dues of the states by borrowing. Earlier, West Bengal’s Mamta government and Punjab’s Amarinder government have raised their voice in front of the central government regarding the GST collection. However these state governments have not written any letter to the central government.