August 31, 2020 5:02 PM

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Tamil Nadu CM Edappadi Palaniswamy asks Centre to pay GST compensation to States

Tamil Nadu Chief Minister Edappadi Palaniswamy has asked the Union Government to pay the GST compensation to the States by raising the required funds as a loan by itself. In a letter to Prime Minister Narendra Modi today, he asked the Centre not to reduce the permitted additional borrowings by the States by 2 per cent of the State GDP under the Atma Nirbhar Bharat stimulus package.<br />'' <br />''<span style="color: #222222;">In the letter, Mr Palaniswamy insisted that the Centre's suggestion made in the recent GST Council meeting, for the States to borrow from the market to make good the shortfall in the compensation, is administratively difficult and more expensive. He  mentioned that the suggestion for the States to borrow for what is essentially the Centre's obligation does not appear to be a strong or valid reason.</span><br />

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