Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar has asked the centre to take a loan from the Reserve Bank of India (RBI) to compensate for the outstanding GST payments to states.
In a meeting chaired by Union Finance Minister Nirmala Sitharaman, the centre sought to convince the states to take a loan to compensate for the GST payments which have been remaining for months. However, Pawar said that the central government should itself take loans and pass funds to the states.
“The amount of GST compensation has not been received on time from the central government and all the states are facing a financial crisis. The central government should take loans and provide funds to the states and get Maharashtra out of the financial crisis. This is the responsibility and duty of the Centre,” Pawar said while speaking at the 41st GST Conference.
Pawar further said that GST is the main source of revenue for the states and it was not possible for states to borrow. “Loans can be made available to the central government at low rates. If the states borrow at higher interest rates, it will have a detrimental effect on the cess and the final burden will fall on the residents of the states,” he added.
The Maharashtra government is all set to oppose the options suggested by the centre to compensate for the outstanding GST payments. The revert will this week to the centre.
Maharashtra, one of the most advanced and leading states in the country, is facing an unprecedented economic crisis. “The central government should play the role of elder brother and get Maharashtra and other states out of the financial crisis,” Pawar said.
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