Centre to borrow to compensate states for GST losses: Chidambaram welcomes change of heart

Finance Minister had written to the states that the central government will borrow Rs 1,10,208 crore and give back-to-back loans to state governments.

Centre to borrow to compensate states for GST losses: Chidambaram welcomes change of heart

"I welcome the change of heart," said Chidambaram. Image: Twitter/@PChidambaram_IN

Tribune News Service
New Delhi, October 16

The Congress on Friday welcomed the Centre’s move to borrow money and pass it on to the states to compensate for GST losses.

Former finance minister and Congress veteran P Chidambaram said the Finance Minister had written to the states that the central government will borrow Rs 1,10,208 crore and give back-to-back loans to state governments.

"I welcome the change of heart," he said, noting that there was no clarity on the balance of the gap in the GST compensation.

“FM’s letter puts the number at Rs 1,06,830 crore for this financial year. There is no clarity on who will borrow the money and no clarity on how the debt will be serviced and repaid.

States are opposed to borrowing on their own account. States are right.There is no difference between the first amount and the second amount,” Chidambaram said.

He said the Centre must resolve the impasse immediately by offering the same terms for Rs 1,06,830 crore as it has now offered for Rs 1,10,208 crore.

“Having taken the correct first step, I urge the PM and the FM to take the second step also and re-establish the trust between the Centre and the States,” Chidambaram said.

Top Stories

SC forms National Task Force to streamline oxygen allocation

SC forms National Task Force to streamline oxygen allocation

'It will enable decision makers to have inputs which go beyo...

Covid positive report no longer mandatory for hospital admission

Covid positive report no longer mandatory for hospital admission

Suspected cases to be admitted too, says Centre

DGCI okays DRDO-drug for Covid cure

DGCI okays DRDO-drug for Covid cure

Clinical trial results have shown this molecule helps in fas...

The truth hits home

The truth hits home

BJP would be judged on Covid management, and not the Gujarat...

No fresh coronavirus cases in 180 districts in a week: Govt

No fresh coronavirus cases in 180 districts in a week: Govt

Over 18 lakh tests done in the last 24 hours

Cities

View All