Union Budget 2021: Ashok Gehlot urges Narendra Modi to extend GST compensation period by five years

Gehlot said that after the removal of various restrictions, including the nationwide lockdown, economic activities have started now, but it will take a long time for the situation to return to normal

Press Trust of India January 30, 2021 09:45:33 IST
Union Budget 2021: Ashok Gehlot urges Narendra Modi to extend GST compensation period by five years

File image of Rajasthan chief minister Ashok Gehlot. Twitter@ashokgehlot51

Jaipur: Rajasthan Chief Minister Ashok Gehlot has written a letter to Prime Minister Narendra Modi, demanding calculation of GST compensation on the basis of the gross revenue deficit of the state and extending the period of the compensation.

He has also requested to raise the additional borrowing limit of the states for the next financial year in the wake of the coronavirus pandemic.

Ahead of Union Budget, Gehlot urged Modi to give attention towards the economic situation of the state, adding that the pandemic has had a profound negative impact on the economy.

The chief minister said that after the removal of various restrictions, including the nationwide lockdown, economic activities have started now, but it will take a long time for the situation to return to normal.

Gehlot said payment for GST compensation is payable by the Centre to the states till June 2022.

But in the current economic circumstances, Gehlot said this period should be extended by five years. He has also reiterated the earlier demand to assess and pay GST compensation amount on the basis of gross revenue deficit for the current financial year.

Gehlot has stated in the letter that under the circumstances arising out of the virus, the state government has opted to borrow an additional two per cent of the gross state domestic product (GSDP) for the current financial year.

He urged Modi to continue this provision of two percent additional borrowing for financial year 2021-22 to ensure availability of financial resources for liabilities of the state government.

Gehlot said the goals of GDP could not be achieved due to the weak pace of development due to the pandemic.

Also, the revenue collection in the state will also not reach the expected level. So, it is necessary to take the above positive steps to improve the economy in the upcoming general budget, he added.

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

Mumbai's Arthur Road jail readies high-security cell to lodge Nirav Modi after UK court's order
India

Mumbai's Arthur Road jail readies high-security cell to lodge Nirav Modi after UK court's order

If lodged in the barrack, Modi likely to get three square meters of personal space, where a cotton mat, pillow, bedsheet and blanket will be provided, Arthur Road jail officials said

Narendra Modi defends push for privatisation, says govt has 'no business to be in business'
India

Narendra Modi defends push for privatisation, says govt has 'no business to be in business'

The prime minister made the remarks on Wednesday while speaking at a webinar on privatisation by the Department of Investment and Public Asset Management

Narendra Modi takes first dose of COVID-19 vaccine, lauds contribution of doctors and scientists
India

Narendra Modi takes first dose of COVID-19 vaccine, lauds contribution of doctors and scientists

The prime minister said it is 'remarkable how our doctors and scientists have worked in quick time to strengthen the global fight against COVID-19'