Homefinance News

Pre-budget meeting: States demand continuing compensation cess for another 5 years

finance | IST

Pre-budget meeting: States demand continuing compensation cess for another 5 years

Mini

States in the pre-budget meet demanded continuing the compensation cess for another 5 years. Secondly, they have also sought that there should be tweaking that the central government should allow states to do when it comes to state-specific schemes, that is the centrally sponsored schemes.

States in the pre-budget meet demanded continuing the compensation cess for another 5 years.

The top demands from states in the pre-budget meeting includes continuing the compensation cess window which is expiring in June 2022 by another five years because states feel that they have not been able to stabilise their revenues post the implementation of GST.
Secondly, they have also sought that there should be tweaking that the central government should allow states to do when it comes to state-specific schemes, that is the centrally sponsored schemes. So every state says that there should not be just a complete overarching umbrella, all states should have their own demands when it comes to using that particular fund under the centrally sponsored schemes, as per the demands of the state.
They have also demanded that states should get to more health care expenditure to strengthen the health care infrastructure.
Also, group of ministers (GoM) on rate rationalisation was supposed to give their final report in this particular GST council meeting, but GoM has not met finally, to finalise or to prepare the final report on rate rationalisation. So there will be more time given to that particular GoM which is under the chairmanship of Karnataka Chief Minister Bommai.
Watch accompanying video for more.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!