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New Delhi:
Senior Congress chief P Chidambaram at present mentioned the Centre’s reported proposal of giving “letter of comfort” to states to borrow cash to bridge the GST compensation hole have been “just words of comfort” on a bit of paper that has “no value”.
He asserted that the states want “hard cash” and if they’re pressured to borrow, the axe will inevitably fall on capital expenditure by the states.
“Government says it will give a ‘Letter of Comfort’ to the states to borrow money to bridge the GST Compensation gap. These are just words of comfort on a piece of paper that has no value,” Mr Chidambaram mentioned in a collection of tweets.
“What states need is hard cash. Only the central government has multiple options and the flexibility to raise the resources and pay the shortfall in GST compensation to the states,” the previous Finance Minister mentioned.
What states want is difficult money. Only the central authorities has a number of choices and the pliability to boost the sources and pay the shortfall in GST compensation to the states
– P. Chidambaram (@PChidambaram_IN) September 10, 2020
If the states are pressured to borrow, the axe will inevitably fall on capital expenditure by the states which have already suffered a reduce, he mentioned.
Mr Chidambaram has been urging the federal government to take concrete measures to revive the financial system and has referred to as upon it to supply GST compensation to states, as promised to them on the time of GST implementation.
(Except for the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)
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