HYDERABAD: Finance minister Etela Rajender asked the Union government to release Rs 500 and Rs 100 denomination notes in proportion to new notes of Rs 2,000 to the State, immediately.
Participating in the fifth Council meeting of Goods and Services Tax (GST) held in New Delhi on Saturday, the Finance minister requested the Centre to see that demonetisation did not have an adverse impact on the State budget.
“The Centre should release more funds to the States that are facing problems due to the demonetisation of big notes and subsequent decrease of revenue of States,” Rajender said in the meeting. “Though the cancellation of big notes was good, the Centre should ensure that there is no problem to the poor and the people belonging to low income group and middle class,” the finance minister said.
Later, speaking to mediapersons in New Delhi, Rajender said the GST Council would meet again on December 11 and 12 and discuss about the new tax structure. “We brought to the notice of the GST Council the problems of the poor and shortage of currency due to demonetisation,” he said. The Finance minister said they had also sought a moratorium on the payments of principal and interest on loans taken by the State government. “The Centre should also release the Central Service Tax (CST) compensation, funds for the backward districts and other grants immediately, so that the State can cope up with the situation,” Rajender said.
The Centre should also relax the rules and see that the States can borrow money from lending agencies to continue their schemes, he added.
The finance minister said that all the States demanded increase in Fiscal Responsibility and Budget Management Act (FRBM) limit for the respective States. Principal secretary to the government (Excise and Commercial Taxes) Somesh Kumar and Commercial Taxes commissioner Anil Kumar were also present in the meeting.