P Chidambaram also urged the state governments to reject the option given by the Center on the issue of GST compensation and demand the amount in one voice.
New Delhi| Senior Congress leader P Chidambaram on Saturday attacked Finance Minister Nirmala Sitharaman’s statement terming Coronavirus pandemic as an ‘Act of God’ and questioned whether the finance minister would answer as ‘messenger of God’. He asked how will she explain the ‘mismanagement’ of the economy even before the coronavirus epidemic. Former finance minister Chidambaram also attacked the central government over the GST compensation issue for which, the centre has given the option of taking loans to the states.
P Chidambaram tweeted, “If the pandemic is an ‘Act of God’, how do we describe the mismanagement of the economy during 2017-18 2018-19 and 2019-20 BEFORE the pandemic struck India? Will the FM as the Messenger of God please answer?”
If the pandemic is an ‘Act of God’, how do we describe the mismanagement of the economy during 2017-18 2018-19 and 2019-20 BEFORE the pandemic struck India? Will the FM as the Messenger of God please answer?
— P. Chidambaram (@PChidambaram_IN) August 29, 2020
The Finance Minister addressing a press conference after the GST Council meeting said on Thursday that the economy has been affected by the Covid-19 epidemic, which is a divine phenomenon and will lead to a contraction in the current financial year. GST revenue receipts have been estimated to decrease by Rs 2.35 lakh crore in the current financial year.
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The two options given by the Modi government to the States to bridge the GST Compensation gap are unacceptable
— P. Chidambaram (@PChidambaram_IN) August 29, 2020
Under the second option, States are asked to borrow from the RBI window. It is more market borrowing, only by a different name. Again, the entire financial burden falls on the States
— P. Chidambaram (@PChidambaram_IN) August 29, 2020
In fact, Nirmala Sitharaman told reporters after the 41st meeting of the GST Council that the Center will pay the compensation that is evidently due to the GST implementation.
The central government is absolving itself of any financial responsibility. This is a gross betrayal as well as a direct violation of the law
— P. Chidambaram (@PChidambaram_IN) August 29, 2020
Chidambaram also urged the state governments to reject the option given by the Center on the issue of GST compensation and demand the amount in one voice. In fact, in the GST Council meeting on Thursday, the Center gave the option to the states that they can take loans for the required revenue deficit in the current financial year and this will be helped by the Center. He said, “The central government is absolving itself of any financial responsibility. This is a gross betrayal as well as a direct violation of the law.”
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