The 15th Finance Commission will hold a meeting with its economic advisory panel on Friday to discuss issues of GDP growth, GST compensation and fiscal consolidation.
Chairman N.K. Singh and the members of 15th Finance Commission will hold a day-long meeting with the Economic Advisory Council of the Commission on Friday, an official statement said.
The topic of the meeting is ‘Final discussion on GDP growth, tax buoyancy of the Centre and the States, GST compensation , revenue deficit grant and fiscal consolidation’, it added.
The meeting comes in the backdrop of India’s GDP growth contacting 23.9% in April-June quarter. In the corresponding quarter of last financial year, the Indian economy had grown at a rate of 5%.
Besides, fiscal deficit has already crossed budget estimates at the end of July.
The Centre’s fiscal deficit during April-July stood at ₹8.21 lakh crore or 103% of 2020-21 budget estimates of ₹7.96 lakh crore.
The issue of GST compensation payable to states would also be discussed in the meeting.
The Centre has given two options to the states -- to borrow either from a special window facilitated by the RBI or from market -- to meet the ₹2.35 lakh crore GST shortfall, and has also proposed extending the compensation cess levied on luxury, demerit and sin goods beyond 2022.
The compensation due to the states in April-July period stood at ₹1.50 lakh crore.