Kerala begins action to provide documents, crisis will not end with GST: KN Balagopal

THIRUVANANTHAPURAM: Following the Union Finance Minister's statement that GST compensation was delayed due to the non-availability of AG's authenticated certificate, the state has initiated the process of checking the reports related to the CAG. The PAC section of the Finance Department started procedures for this on Tuesday. Even though Kerala does not expect any significant economic benefit by giving the audit report of the tax revenue, the state government is trying to complete the proceedings without paving the way to any kind of objection.

Meanwhile, the government is of the view that NK Premachandran MP is playing unnecessary politics regarding GST compensation. Kerala has no complaint that the Centre is not giving it GST compensation. Kerala had raised the issue of not receiving the IGST share in the GST Council. It is hindered by technical problems. This problem will end with technological innovation in Kerala and solving the problems in the national network. Finance Minister KN Balagopal had clarified this in the Assembly.

What Finance Minister is saying

"The current economic crisis in the state is not related to GST. When GST was introduced, the state lost its tax freedom. The central government unilaterally changed the distribution of our due share from the divisive pool. As a result, Kerala's share came down from 3.75 percent to 1.95 percent. Another reason is the Centre's irrational stringency in borrowing. Instead of collectively trying to solve this issue, the opposition is justifying the central position," Balagopal said.

State tax revenue (including GST compensation)

2017- 42176 Crore Rs

2018 -46460 crores

2019 -50644 crores

2020- 50323 crores

2021 -47672 crores