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GST council becoming a rubber-stamp authority: PTR’s maiden speech

“From resolutely Communist China to avowedly Capitalist USA India lags almost all countries,” he said.

Published: 29th May 2021 05:03 AM  |   Last Updated: 29th May 2021 05:03 AM   |  A+A-

Tamil Nadu minister PTR Palanivel Thiagarajan

Tamil Nadu FinMin PTR Palanivel Thiagarajan

By Express News Service

CHENNAI: “India lags behind almost all countries when it comes to devolution of fiscal powers,” said Finance Minister Palanivel Thiagarajan in his maiden speech at the 43rd GST Council meeting on Friday.

“From resolutely Communist China to avowedly Capitalist USA India lags almost all countries,” he said.

“The Council is becoming, in some, ways a mere ceremonial seal, a rubber-stamp authority, with the real power to create policy abrogated to (Constitutionally) ad-hoc agencies such as the TRU of the CBIC, a feeble GST Secretariat, and the quasi-Governmental GST Network.”

Making a strong pitch for fiscal federalism, he pointed out that with the advent of GST, there has been an “increasing concentration of powers with the Centre” at levels “never envisioned in our Constitution.” Quoting the report of the 15th Finance Commission, Thiagarajan said the promises made during the introduction of the new tax system gains in tax buoyancy, boost to GDP and formalization of the economy have failed to materialize.

“The gap between large organisations and MSMEs has widened due to unequal access to technology and dispute-resolution mechanisms,” he said, adding that States had agreed to it only as “an act of faith”. The great problem, he said, was the “deterioration of trust between States and the Centre, driven by a sizeable reduction in share of taxes, perceived lack of “Good Faith” and compassion in Centre’s approach to conciliation of differences, especially during Covid-19.”



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  • Ram

    What he is telling may not be correct. In fact the share of states and Centre are worked based on formula amicable to both of them. This is done in decades. As the new State government is introducing lot of populist schemes in view of Covid pandemic he is forced to state like this.
    2 months ago reply
  • anurag gupta

    I've not forgotten that DMK looted Rs. 1.75 lac crore in the 2G scam please work on to return it
    2 months ago reply
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