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New Delhi:
Congress chief P Chidambaram has taken a swipe at Finance Minister Nirmala Sitharaman over the “act of God” remark she made on Thursday whereas describing the coronavirus pandemic and its impression on GST assortment.
Sarcastically hailing the Finance Minister as “the messenger of God”, Mr Chidambaram demanded she additionally clarify the federal government’s “mismanagement” of the financial system earlier than the Covid disaster started.
“If the pandemic is an “Act of God”, how do we describe the mismanagement of the economy during 2017/18, 2018/19 and 2019/20 BEFORE the pandemic struck India? Will the FM as the Messenger of God please answer?” Mr Chidambaram requested within the first of 5 tweets posted Saturday morning.
If the pandemic is an ‘Act of God’, how will we describe the mismanagement of the financial system throughout 2017-18 2018-19 and 2019-20 BEFORE the pandemic struck India? Will the FM because the Messenger of God please reply?
— P. Chidambaram (@PChidambaram_IN) August 29, 2020
Mr Chidambaram, and different senior Congress leaders, have pointed to a gentle decline in quarterly GDP progress charges – from 7.1 per cent in Q2 2018/19 to three.1 per cent in This fall in 2019/20.
In May Mr Chidambaram stated 3.1 per cent GDP progress in January-March quarter of 2019-20 was a telling commentary on the financial administration of the federal government.
His occasion colleague and former Union Minister Jairam Ramesh stated the federal government was in denial over its dealing with of the financial system, which he known as “parm-atma-nirbhar (dependent on God)”.
In his tweets at present Mr Chidambaram additionally labelled each choices given by the Narendra Modi authorities to counter the shortfall in GST (items and providers tax) assortment as “unacceptable”.
“Under the first option states are asked to borrow by pledging future receivables under compensation cess. The financial burden falls entirely on the states,” he tweeted.
“Under the second option, states are asked to borrow from the RBI window. It is more market borrowing, only by a different name. Again, the entire financial burden falls on the states,” he added.
Under the second possibility, States are requested to borrow from the RBI window. It is extra market borrowing, solely by a distinct identify. Again, all the monetary burden falls on the States
— P. Chidambaram (@PChidambaram_IN) August 29, 2020
“The central government is absolving itself of any financial responsibility. This is a gross betrayal as well as a direct violation of the law,” Mr Chidambaram declared.
Two days in the past Nirmala Sitharaman stated the pandemic had affected GST assortment – a shortfall of Rs 2.35 lakh crore for fiscal yr 2021.
“… this yr we face a unprecedented state of affairs. We are going through an act of God the place we might even see a contraction,” she stated.
The centre has launched over Rs 1.65 lakh crore as GST compensation to states for fiscal 2020, together with Rs 13,806 crore for March, the Finance Minister stated, noting that cess collected for GST compensation was solely Rs 95,444 crore.
The assembly of the GST Council was held amid extreme strain from states looking for compensation for income shortfall amid the coronavirus pandemic.
The centre is hard-pressed to pay GST dues to states that haven’t earned a lot this yr resulting from months of lockdown necessitated by the COVID-19 disaster. Punjab, for instance, stated it could see a income deficit of Rs 25,000 crore this yr.
Congress-ruled states (which incorporates Punjab) and people run by events apart from the BJP have stated the centre has a statutory obligation to pay GST dues. The centre claimed it has no such obligation if there’s a shortfall in collections.
However, the federal government’s prime lawyer, Attorney General KK Venugopal, has additionally stated the centre has to compensate states absolutely for the lack of income in GST throughout the coronavirus disaster, based on sources.
Yesterday Congress MP Rahul Gandhi additionally hit out at Nirmala Sitharaman over her “act of God” comment, and stated the financial system had been “destroyed” by three actions – demonetisation, “flawed” GST and a “failed” lockdown.
With enter from PTI
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