At pre-budget meeting, Chhattisgarh demands GST compensation, reimbursement of expenditure for Naxal eradication

Chhattisgarh Chief Minister Bhupesh Baghel on Wednesday reiterated the state's demand of GST compensation, transferring of the amounts collected as 'additional levy' from coal block companies and reimbursement of expenditure of Rs 15,000 crore made by the state government for eradication of Naxalism.

Baghel, during the pre-budget meeting held here in the national capital in the presence of Union Finance Minister Nirmala Sitharaman and finance ministers of other states, demanded reimbursement of the expenditure of Rs 15,000 crore made by the state government on the central security forces deployed in the state for the eradication of Naxalism.

"A special provision should be made in the next budget for the reimbursement of the expenditure of Rs 15,000 crore made by the state government on the central security forces deployed in the state for the eradication of Naxalism," CM Baghel said in the meeting.

At the meeting held at Vigyan Bhawan here, the Chief Minister further said, "The state's economy has been impacted due to disruption of economic activities during the COVID-19 pandemic.

On GST compensation, Baghel said that the state government will be able to spend on development programmes and schemes if the amount pending with the Centre is received.

Further, Chattishgarh Chief Minister said that there has been a loss of revenue to the State due to the GST tax system while adding that the Centre should continue the GST compensation grant for the next five years.

"The Centre has not made arrangements to compensate the loss of revenue of about Rs 5000 crore to the state in the coming year, so the GST compensation grant should be continued for the next five years even after June 2022," he said.

Baghel also raised the concern of receiving fewer taxes from the Central Government and said "Chhattisgarh has received less share of central taxes by Rs 13,089 crore in the Union Budget of the last three years. In the coming budget, the share of central taxes should be given to the state completely."

He also said that the amount of Rs 4,140 crore, which is deposited with the Centre at the rate of Rs 294 per tonne on coal mining from coal block companies should be transferred to Chhattisgarh soon.

The Chief Minister said that due to the reduction of Central Excise Tax on petrol and diesel by the Centre, there will be a reduction in the amount of the state's share and also there will be a reduction in the revenue from VAT, so in future, instead of excise tax, the cess should be reduced.

( With inputs from ANI )

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