Chhattisgarh CM demands continuation of GST compensation grant for next five years

CM Bhupesh Baghel said there has been a loss of revenue to the states due to the GST tax system, and that the Center has not made arrangements to compensate for the loss of revenue the coming year. 
Chhattisgarh CM Bhupesh Baghel  (Photo | Shekhar Yadav, EPS)
Chhattisgarh CM Bhupesh Baghel (Photo | Shekhar Yadav, EPS)

RAIPUR: Chhattisgarh Chief Minister Bhupesh Baghel today reiterated the state’s demand of GST compensation, transferring of the amounts collected as 'additional levy' from coal block companies and reimbursement of expenditure of Rs 15,000 crores made by the state government for eradication of Naxalism. 

During the pre-budget meeting held at Vigyan Bhawan here, the chief minister said the state’s economy has been impacted due to disruption of economic activities during Covid-19 pandemic. On the subject of GST compensation, he said the state government will be able to spend on development programmes and schemes if the amount pending with the Centre is received.

Union Finance Minister Nirmala Sitharaman and finance ministers of other states were present at the meeting.

The chief minister said that there has been a loss of revenue to the states due to the GST tax system and that the Center has not made arrangements to compensate the loss of revenue of about Rs 5000 crores to the state in the coming year, so the GST compensation grant should be continued for the next 5 years even after June 2022.

He said Chhattisgarh has received less share of central taxes by Rs 13,089 crore in the Union Budget of the last three years. In the coming budget, the share of central taxes should be given to the state completely.

He also demanded that Rs 4,140 crore deposited with the Center at the rate of Rs 294 per tonne on coal mining from coal block companies should be transferred to Chhattisgarh soon.

The chief minister said a special provision should be made in the next budget for the reimbursement of the expenditure of 15 thousand crores made by the state government on the central security forces deployed in the state for the eradication of Naxalism.

The Chief Minister said that due to the reduction of Central Excise Tax on petrol and diesel by the Center, there will be a reduction in the amount of the state's share and also there will be a reduction in the revenue from VAT, so in future, instead of excise tax, the cess should be reduced.

Baghel demanded an increase in the premium limit of Rs. 1,100 per family for the states which are performing better under Pradhan Mantri Jan Arogya Yojana (Ayushman Bharat). He said this would increase the number of beneficiaries and most of the population would get the benefit. Along with this, he said that the families eligible under the National Health Insurance Scheme should also be eligible under the Pradhan Mantri Jan Arogya Yojana.

In the meeting, Baghel said the share of the states should be reduced to 75% by reducing the participation of the states in the Pradhan Mantri Awas Yojana and Jal Jeevan Mission.

Apart from this, he also demanded the establishment of an international cargo terminal in Raipur, a campus of Central Tribal University and marketing center under Vocal for Local Scheme in the Union Budget.

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