Chhattisgarh CM demands continuation of GST compensation grant for next 5 years

New Delhi, Dec 30 (IANS) Chhattisgarh Chief Minister Bhupesh Baghel during the pre-budget meet on Thursday, demanded the continuation of GST compensation grant for the next five years and reimbursement of Rs 15,000 crore expenditure on the Central Security Forces deployed in Maoists eradication.

At the meeting, held at Vigyan Bhawan here, the Chief Minister said that the state's economy has been impacted due to the pandemic. With the GST compensation, he said, the state government will be able to spend on development programmes and schemes if amount pending with the Centre is received.

Union Finance Minister Nirmala Sitharaman and state finance ministers were also present at the meeting.

According to Baghel, there has been a loss of revenue to the states due to the GST tax system. The Centre has not made arrangements to compensate the loss of revenue of about Rs 5,000 crore to the state in the coming year, so the GST compensation grant should be continued for the next 5 years even after June 2022, he said.

He added that Chhattisgarh has received Rs 13,089 crore less central taxes in the Union Budget of the last three years. In the coming budget, the share of central taxes should be given to the state.

He also demanded the Rs 4,140 crore deposited with the Centre at the rate of Rs 294 per tonne on coal mining from coal block companies, to be transferred to the state soon.

During the meeting, Baghel gave various suggestions such as giving generous amount to the farmers and labourers through various schemes, to make the wage rate of MNREGA at par with the labour commissioner's rates, to give special incentives for production of pulses/oilseeds.

The Chief Minister also pointed out that due to reduction of the Central Excise Tax on petrol and diesel by the Centre, there will be a reduction in the amount of the state's share and there will also be a reduction in the revenue from VAT. Therefore, in future, instead of excise tax, the cess should be reduced.

He demanded increase in the premium limit of Rs 1,100 per family for the states which are performing better under Pradhan Mantri Jan Arogya Yojana (Ayushman Bharat). He said that this would increase the number of beneficiaries and most of the population would get the benefit.

Apart from this, he also demanded establishment of International Cargo Terminal in Raipur, a campus of Central Tribal University and marketing centre under Vocal for Local Scheme in the Union Budget.