Other States

Rajasthan seeks extension of GST compensation grant period by 5 years

The Rajasthan government has urged the Centre to extend the period of grant of goods and services tax (GST) compensation to the States by five years, from June 2022 to June 2027, in view of a weak financial condition of the States during the COVID-19 pandemic. The State has also sought an increase in the Centre’s share in the centrally sponsored schemes.

Urban Development Minister Shanti Dhariwal represented the State at a pre-Budget consultation meeting with Union Finance Minister Nirmala Sitharaman on Monday. Mr. Dhariwal said all the States were facing a revenue deficit because of “lower than expected GST collections”, while economic recession was still continuing.

Mr. Dhariwal said the ratio of the Centre's share in the centrally sponsored schemes should be enhanced to 75%. He also suggested a reduction in the import duty on gold and silver jewellery and precious and semi-precious stones from 7.50% to 2.50%.

“No project in Rajasthan has been accorded the status of national project. The State needs special central assistance and budgetary support for some of its major projects,” Mr. Dhariwal said, while seeking the national project status for the Eastern Rajasthan Canal Project, which would address the irrigation and drinking water needs of 13 districts.

The Minister stated that the State government had made large-scale efforts to contain the pandemic despite its limited financial resources. The 3% credit limit would not be sufficient for the State during the next financial year 2021-22.

Mr. Dhariwal sought a gazette notification for 50 roads in the State, which were earlier declared national highways in principle. All the railway projects approved in the past should be included in the Union Budget, he added.

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Printable version | Mar 6, 2021 11:39:09 AM | https://www.thehindu.com/news/national/other-states/rajasthan-seeks-extension-of-gst-compensation-grant-period-by-5-years/article33613349.ece

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