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Chandigarh
Punjab Finance Minister Manpreet Singh Badal has written a letter to the Revenue Secretary rejecting the two options given to the states to make up for the shortfall in GST compensation.
Punjab was amongst the states that had been vocal against the delay in GST compensation. Compensation worth Rs 6,500 crore is due to the cash- strapped state, which is finding it difficult to meet its committed liabilities.
Badal said that there was a clear violation of the GST Act, and compensation to states can neither be increased nor decreased.
“This is a betrayal of the spirit of cooperative federalism,” he said in the letter.
He recommended that a GOM may be constituted to deliberate on the matter and give its recommendations in ten days.
