CM Bommai meets FM Sitharaman; demands extension of GST compensation to states for 3 more years
New Delhi, Aug 26: Amid fall in state revenue and GST collection in view of COVID-19 crisis, Karnataka Chief Minister Basavaraj S Bommai on Thursday demanded the Centre to extend the GST compensation period to states beyond 2022, for three more years.
After a meeting with Union Finance Minister Nirmala Sitharaman, Bommai said he also discussed the GST (Goods and Services Tax) dues to the tune of Rs 11,000 crore to be paid to Karnataka in installments.
"The dues that were to be paid from July 2022 are being advanced through installment from this year. Along with this, I discussed extending the GST compensation to states beyond 2022," he told reporters after the meeting.
In the meeting, the CM informed Sitharaman that the state GST collection has not yet stabilised in view of COVID-19 crisis, and it would be more helpful in this ongoing revenue crisis if the GST compensation to states is extended for three more years.
Karnataka is one of the best performing states since the enactment of GST in 2017. "However, the COVID crisis since the last financial year has brought the state revenue collection down including the GST collections," he said in a representation made to the FM.
Keeping in mind the revenue crisis in all states, the Centre had provided the GST compensation loan for the 2020-21 fiscal and it has also been extended for the current fiscal.
"However, the compensation loan would support the states for only the current financial year, but the impact made by the COVID on revenue collection will be carried forward for next few years also. So, it will take time for GST revenue collection to reach the protected amount," he said.
"I request you to kindly reconsider the state's request on extending the GST compensation," the CM stressed.
In the meeting, Bommai -- who is also a member of the GST Council -- also flagged that the 15th Finance Commission in its final report for 2021-26 recommended reduction in Karnataka's share in tax devolution to 3.647 per cent, as compared to 4.71 per cent recommended by 14th Finance Commission.
Since Karnataka has seen the steepest cut of 23 per cent because of the reduction in the devolution share, he requested the FM to reconsider the criteria of horizontal devolution for sharing of resources between the states.
The CM also informed that the state government had submitted an additional memorandum to the Commission in this regard. But the Commission has not considered the state's request.
"This has severely impacted Karnataka compared to other southern states," he noted.
The CM also brought to the notice of the FM that the central government has not considered the 15th Finance Commission recommendation to award state specific grants of Rs 6,000 crore to Karnataka for holistic improvement of water bodies of Bengaluru and for Peripheral Ring Road.
"... the government of India in its explanatory memorandum has not considered the Finance Commission's recommendation. This would be a set back to the state which is already strained due to severe cuts in tax devolution," he said.
Bengaluru, the IT and start-up hub of the country, has a major contribution to the services sector of the national economy. And the city has further potential to attract more investments if the critical infrastructure is improved, he said.
That apart, the NABARD assistance given to different groups including SC and ST women, Self Help Groups and for infrastructure purposes-- was also discussed in detail with the FM, he added.
Bommai on the second day of his visit to Delhi is also scheduled to meet Union Health Minister Mansukh Mandaviya and Commerce and Food Minister Piyush Goyal.
Met Union Finance Minister Smt. @nsitharaman in New Delhi today & discussed various matters regarding development of the state. pic.twitter.com/zFAwyI9UrN
— Basavaraj S Bommai (@BSBommai) August 26, 2021
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Punjab CM Mann meets President Murmu, seeks cancellation of membership of 6 RS members
Chandigarh (PTI): Chief Minister Bhagwant Mann on Tuesday met President Droupadi Murmu, demanding the termination of the membership of six Rajya Sabha MPs from Punjab who defected to the BJP and also pressed for the introduction of a constitutional provision allowing for the recall of members.
Accompanied by party MLAs and ministers, Mann visited Rashtrapati Bhavan in Delhi.
This meeting followed a significant setback for the Aam Aadmi Party (AAP) on April 24, when seven of its 10 Rajya Sabha MPs -- Raghav Chadha, Ashok Mittal, Sandeep Pathak, Harbhajan Singh, Rajendra Gupta, Vikramjit Sahney and Swati Maliwal -- quit and merged with the BJP, alleging that the party had strayed from its principles, values and core morals. Six of the seven MPs who left AAP hailed from Punjab.
After he met with the President, Mann addressed the media here, describing the departure of the seven MPs as a "murder" of the Constitution. He stated, "Seven MPs merging with another party is completely unconstitutional. I spoke to Rashtrapati ji in detail."
Mann pointed out that he told the President that the BJP holds only two MLA seats (in Punjab), yet now has six MPs in the Rajya Sabha. He questioned, "How can this be possible? Isn't it a mockery of the Constitution?
"If they are such revolutionaries at heart, then they should have resigned from their six seats. The AAP could have sent someone else," Mann said, taking a swipe at them.
He emphasised the need for a recall provision in the Constitution, referencing MP Raghav Chadha's previous demands for such a measure when members fail to meet public expectations.
"Have you lived up to the expectations of the people?" Mann challenged the MPs during his statement.
Mann also presented a letter to the President, signed by all AAP MLAs. He differentiated between the terms 'elected' and 'selected,' stating, "They were 'selected.' Therefore, their membership should be cancelled."
The President assured Mann that she would consult constitutional experts before responding.
Earlier in the day, Mann, along with party MLAs, departed for Delhi from Chandigarh.
Speaking to reporters in Chandigarh, Mann affirmed that all AAP MLAs stand united with the party. "Only I have been given time for the meeting," Mann said.
"The President is the guardian of the Constitution. She is the constitutional head of the country," he added.
Later in a post on X in Hindi, Mann said, "Our struggle to protect Punjab's rights and interests continues. Today, along with all AAP MLAs, I have left to discuss Punjab's burning issues and present the state's strong voice before the President.
As your public servant, our government remains fully committed to Punjab's prosperity and the safeguarding of the rights of every section of society."
The MLAs and ministers gathered at the chief minister's residence in the morning before heading to Delhi, carrying placards that read 'Punjab Mann De Naal' and 'Punjab's Traitors.'
The legislators left for Delhi in buses.
Mann had previously sought an appointment with the President to meet with party MLAs and demand the "recall" of the Rajya Sabha MPs who defected to the BJP. However, only Mann was given a time slot for the meeting.
