In a letter to Union Finance Minister Nirmala Sitharaman, Punjab Finance Minister Manpreet Singh Badal on Monday asked for reconsideration of the decision related to GST compensation to the states.
Terming the decision a clear breach of the solemn and constitutional assurance by the Central Government, he said that it would be considered a betrayal of the spirit of cooperative federalism that formed the backbone of GST-journey so far. Punjab would like full clarity on each of these issues and the matter once again placed on the agenda in the next meeting of GSTC.
Manpreet Singh Badal also suggested to constitute GoM to deliberate on the matter and make recommendations in a time-bound period of 10 days. Punjab is prepared to cooperate in a spirit of finding a solution to this vexed problem but is unable to persuade itself to either of the options presented at this stage, he said.
Punjab Finance Minister drew attention towards the statements of the then Chairperson that the compensation would be 100% of the revenue loss and it would be paid within the stipulated period of 5 years. Accordingly, it is the Central Government that has the obligation to pay and only the manner of funding was to be decided by the Council and if there were to be shortage, the required funds could be borrowed, he added.