Finance Minister Nirmala Sitharaman said on Friday that the government will not increase taxes on states to compensate for revenue losses incurred due to the coronavirus pandemic.
Nirmala Sitharaman said that the Center will not back down from its promise to pay the Goods and Services Tax (GST) compensation to the states, according to PTI. She said: “Even if we are in a force majeure situation, but we will discuss in the Council how to compensate the states… The Council will take a call on how to borrow to fill the (income) gap. “
The Center had given states the option of two options in which they could borrow Rs 97,000 crore through a special window provided by RBI or Rs 2.35 lakh crore from the market together with the extension of the compensation rate imposed on property of luxury, demerit and sin beyond. 2022 to repay the borrowed sum.
The states face a deficit of Rs 2.35 crore in GST revenue this fiscal year.
Sitharaman said the Opposition is making “irresponsible comments” to a “responsible government” and reiterated that the Center will not breach its promises made to the states regarding payment of compensation. He further added: “We are ready to discuss. We’re bringing everyone together and the Council will find a hearing. This is my optimistic expectation. The Center is not denying (its commitment) “
Sitharaman also criticized the opposition for ridiculing his comment on the ‘Act of God’. He asked the Lok Sabha speaker Om Birla how is it that in court the term “force majeure” is acceptable to explain extraordinary circumstances, but the term “Act of God” has become an object of ridicule.
She said: “A lot of people spoke on the issue of GST compensation (and) my Act of God statement was referred to several times. I’m happy about that. People like to use the Latin expression (as) force majeure, to express extraordinary situations. But a simple finance minister who says that God’s act is taken with sarcasm. What is this sir?
He further added: “I like this condescension.”
The Minister of Finance presented the Complementary Grant Demands for 2020-21 and the Excessive Grant Demands for the bills 2016-17 that were approved by the Lok Sabha.
(with PTI inputs)
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