JAISALMER: States have demanded that the Union government must increase their borrowing limits to support fiscal activities. In a pre-budget meeting on Friday with Union finance minister Nirmala Sitharaman in Jaisalmer, state finance ministers demanded an increased allocation of 50-year interest-free loans to states for their capital expenditure needs.
The meeting took place on Friday in Jaisalmer, where the 55th GST Council meeting will be held. During the meeting, several states have expressed concern over lack of funds for running the states due to existing borrowing limits of 3% of gross state domestic product (GSDP).
The states have also asked for more flexibility in the assistance given to states by the Centre for their capex needs. A part of this assistance is either linked to a set of reforms or are for sector specific projects.
Some states have asked the central government to bear a larger share of land acquisition costs for projects. States have also highlighted the need for state-specific road development projects and railway projects.
Some of the representatives of the states have also emphasized the need for additional funding for disaster relief. They requested more allocation for the State Disaster Response Fund (SDRF). Punjab and Kerala sought special financial packages.
Track and trace system
Sources said the GS Council might give its approval to insert a provision in CGST Act so as to empower the government to enforce the track and trace mechanism for specified commodities.
Concerned over fund crunch
The meeting took place on Friday in Jaisalmer, .During the meeting several states have expressed concern over lack of fund for running the states due to existing borrowing limits of 3% of gross state domestic product (GSDP)