The Central government too has been staring at an empty barrel due to dwindling revenues on account of COVID-19 and it was not fair to attribute any other motive for being unable to pay GST compensation to States, observed Union Minister of State for Home G. Kishan Reddy on Saturday.
At a press conference, Mr. Reddy said it was not as if the Centre was flush with funds and was reluctant to part with them for states when the reality was otherwise as there has been a more than 60% dip in revenues. “We should all sit together and discuss on how to come out of this present unprecedented situation that has ravaged the entire world and every country. We should go about in the spirit of cooperative federal system instead of adopting a stiff attitude,” he averred.
The Minister claimed that the Centre has been saddled with many other issues, including providing funds for the ‘Atmanirbhar’ programmes, loan schemes to the industry, small scale units, agriculture, supplying free foodgrains to the poor, for many months and so on even while keeping an eye on issues concerning international relations.
The Centre had already enhanced borrowing limits for states and had offered to pay interest as well as stand guarantee to loans if taken by states.
