Finance Minister Pranab Mukherjee has assured the states that the Centre will fully compensate possible losses that may arise out of the implementation of the Goods and Services Tax – GST – regime. He was responding to the concerns expressed by some Chief Ministers in this regard at the National Development Council meeting, now in progress in New Delhi. The Chief Ministers of the BJP-ruled states cautioned the Centre that the GST should not impact the autonomy of the states to levy taxes. Chief Ministers of the naxal-hit states,including Raman Singh of Chhattisgarh, wanted the security apparatus to be strengthened and called for speedy development. Gujarat Chief Minister Narendra Modi, wanted the setting up of a Joint Parliamentary Committee to probe the alleged corruption in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme – MGNREGA. Jammu and Kashmir Chief Minister Omar Abdullah called for amendments to the Armed Forces Special Powers Act and reorientation of security forces saying that this will help in restoring the pride of the people. He also stressed the need for initiating internal dialogue in an inclusive manner saying that it is inextricably linked with the political resolution of the aspiration of the people of the state. Punjab Chief Minister Prakash Singh Badal, asked the Centre to waive all agricultural loans of the farmers in the state as a one time measure without any condition of the size of the land holding. Himachal Pradesh Chief Minister, Prof. Prem Kumar Dhumal, wanted a special fund in the form of green bonus for protection of forest cover. Several states wanted that the Centre should not delay the release of funds after plan allocation. Some states also wanted the ceiling on states borrowing to be increased. They also wanted the Centre to bear the burden caused by pay revisions. Karnataka Chief Minister B. S Yeddyurappa, asked the Centre to ban the export of iron ore . Manipur Chief Minister, Ibobi Singh, urged the Centre to consider deploying the Border Security Forces along India and Myanmar border for effective surveillance saying that there is unrestricted cross-border movement of militants and smugglers. While expressing concern over food inflation, many states demanded universalization and streamling of the Public Distribution System.
News On AIR | July 24, 2010 9:02 PM
Centre will compensate losses after implementation of GST, assures FM