GST i.e. Goods and Services Tax has completed six years this month. In these six years, there have been continuous debates on its advantages and disadvantages. Many people have believed that the revenue of the states has decreased due to GST. Now NITI Aayog has also endorsed this belief.
States are suffering
According to a report by news agency PTI, NITI Aayog CEO BVR Subramaniam said on Monday Said in a program that the revenue of the states has decreased due to the implementation of GST. At the same time, due to the increase in the number of centrally sponsored schemes, the states have suffered losses on the revenue front. NITI Aayog CEO BVR Subramaniam was participating in a seminar of the Center for Social and Economic Progress (CSEP) on Monday.
Transparency is necessary in these matters.
On this occasion, he talked about ensuring transparency in the finance matters of the states. He said that ensuring better transparency would help the states to raise funds from the market at cheaper rates. Along with this, he also advocated the creation of an institution like the Fiscal Council. He said that the market likes transparency. In such a situation, transparency becomes more important than anonymity. States should ensure that everything is reported in some form or the other. This will only help them.
Example of these states in front
Subramaniam also gave examples of some states to clarify his point. He said that the five southern states accounted for 93 percent of the off-budget borrowings that took place last year. On the other hand, states with high fiscal deficits like West Bengal, Punjab and Rajasthan lagged far behind in raising extra-budgetary debt.
This change is necessary
He said that the reason Market discipline. The market is favoring lending to southern states more than Bengal, Punjab and Rajasthan. He said that when the states do not have their own bond market, they have to go through the Government of India or the RBI to raise funds from the market. If states develop bond market and maintain transparency, then market may consider to fund them.
States in loss of four lakh crores
Niti Aayog CEO, Central Govt. Also talked about the need to increase transparency in the matter of fund raising apart from the budget. He called discipline in the matter of cess and surcharge necessary. He accepted that after the implementation of Goods and Services Tax i.e. GST, the revenue of the states is decreasing. He also said that due to the increase in the number of centrally sponsored schemes, the revenue of the states has decreased by about Rs 4 lakh crore.
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