Let people know the real situation

The dispute over GST compensation for Kerala has opened a new controversy with the statement made by Union Finance Minister Nirmala Sitharaman in Parliament. The Union Minister stated that the compensation could not be accurately calculated because the accounts certified by the AG had not been submitted for five years. She also said that the Center is willing to settle the dues, if there are arrears, when the exact accounts are submitted. The Union Finance Minister's words refute some of the facts that Kerala has been repeating so far.

Ruling party leaders, including state finance minister KN Balagopal, have been stating that the central government has not given proper shares, including GST compensation arrears, and this is the cause of the state's financial crisis. But with the implementation of GST in 2017, why is it that the state is not able to say exactly how much loss it has incurred in the last years? It cannot be said that the loss should be compensated on an assumption of accounts. Central Finance Department has given GST compensation to the states on the basis of the figures approved by the AG. As Kerala did not provide any figures, the compensation may have been calculated based on the average income of the previous years.

It is a serious failure that Kerala did not submit the AG's certificate. Another matter is that the State Finance Minister flatly denied the Union Minister's allegation. The state finance minister explained that it could not be submitted to the Center on time because the AG did not check the figures and give the certificate. This reference confirms Nirmala Sitharaman's allegation. If the State Accountant General took more time than usual to issue the proper certificate, the State could have asked for expediting the process. At that time, the Central Finance Department could have been informed that the failure on the part of the AG was hindering the submission of the certificate regarding the calculation of losses. The Union Minister's statement makes it clear that nothing like that has happened. Aren't there more than enough officers to ensure that the reports go to Delhi with the necessary certificates? What are they all doing?

Finance Minister Balagopal is now saying that Kerala has no dispute with the Center regarding GST arrears. It is also stated that only 750 crore rupees is to be received as arrears. The revelation of the central and state ministers is confusing the people. It was said that additional tax proposals of around 4000 crore rupees have been brought in the budget considering the neglect the state was facing in payment of the GST dues. After the Union Finance Minister's disclosure, people will be interested to know the real facts. The state has received Rs 41,779 crore in tax arrears since 2018. If accurate figures had been given, more would have been obtained. Since there is still an opportunity to submit the authentic account, an attempt along with the necessary documents must be made to collect the dues in full. This may not be possible with irregular accounts. The Union Minister's statement on the GST arrears issue indirectly questions the government's stand that one of the reasons put forward for the introduction of fuel cess is discrimination in getting central funds. The state's indifference is what hinders getting due compensation. In the case where it is clear that there is no basis in the allegations, as suggested by the Centre, efforts should be made to submit the accounts for five years along with the AG's certificate.