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'Why is your CM mortgaging your future for Modi'

Taking to his Twitter handle, Congress leader Rahul Gandhi took a jibe at the state governments that have agreed to the Centre's borrowing proposal on the GST compensation issue.

Congress leader Rahul Gandhi
Congress leader Rahul Gandhi

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Published : Oct 12, 2020, 1:09 PM IST

New Delhi: Congress leader Rahul Gandhi on Monday took a jibe at the state governments that have agreed to the Centre's borrowing proposal on the GST compensation issue and asked people as to why their chief ministers were "mortgaging" their future for Prime Minister Narendra Modi.

In a tweet, Gandhi said, "1. Centre promises GST revenue for States. 2. Economy shattered by PM & Covid. 3. PM gives (Rs) 1.4 lakh Crs tax cuts to Corporates, buys 2 planes for himself for (Rs) 8400 Crs. 4. Centre has no money to pay States 5. FM tells States- Borrow."

"Why is your CM mortgaging your future for Modi?" Gandhi asked.

In August, the Centre gave two options to the states to borrow either Rs 97,000 crore from a special window facilitated by the Reserve Bank of India or Rs 2.35 lakh crore from the market. It had also proposed extending the compensation cess levied on luxury, demerit and sin goods beyond 2022 to repay the borrowing.

Following a demand by some states, the amount of Rs 97,000 crore was increased to Rs 1.10 lakh crore.

As many as 21 states -- which are mostly BJP-ruled or have supported it on various issues -- have opted to borrow Rs 1.10 lakh crore to meet the compensation shortfall.

The Centre has released Rs 20,000 crore to the states towards the compensation shortfall so far in the current fiscal.

Under the GST structure, taxes are levied under 5, 12, 18 and 28 per cent slabs.

(PTI report)

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