Continuing from where they left, the 10 opposition-ruled states and UT lobbied for the Center to borrow the funds, something the Finance Minister Nirmala Sitharaman declined to do so, arguing that higher than announced loans will increase the cost of funds for the government and the private sector.
“The impact will be less if the states borrow … The Center will facilitate the loans to ensure that the cost is equitable for all states,” he said after the meeting, staying in the position taken even before the schedule was met. of loans for the second half of the year. finalized.
At Monday’s four-hour meeting, the third on the subject, there were 12 states that supported the Center’s preferred option of raising Rs 1.1 lakh crore, out of the Rs 2.3 lakh crore, estimated market deficit. “Whoever wants to speak, please speak up. As many states also said, keep talking, withholding other states will only make them look really bad at home … they can’t repeatedly say ‘sorry the Council couldn’t reach a consensus so until then I won’t do anything spending ‘… Does our conscience allow us to repress states that have opted for something until a consensus is reached? Sitharaman said.
Some of the states, such as West Bengal, had proposed invoking the dispute resolution mechanism to decide on the issue within seven to ten days. Alternatively, a group of ministers could be established, others suggested. But the proposals were rejected and some states described the meeting as a show of “majority”.
“There is no dispute, we may have differences,” Sitharaman said, adding that the GST Council had powers to decide on issues such as an extension of compensation. tax beyond June 2022, that had been done. He also said that states have been assured that they do not have to bear the burden of their budget.
The opposition-ruled states, however, have not decided their future course of action, although, as TOI reported last Tuesday, it was clear that the Center was not going to allow voting on the borrowing plan, citing the legal opinion that it was a matter beyond the scope of the GST Council.
.
