Friday, January 27, 2023

FM chairs pre-budget consultation with finance ministers of states

Spl. Correspondent

The Union Finance Minister held the pre-budget consultations with the Finance Ministers of States and Union Territories (with Legislature) on Friday.
The participants thanked the Union Finance Minister for financially supporting their States/Union Territories by enhancing borrowing limits, providing two advanced devolution installments and through special assistance for capital expenditure. The participants also gave numerous suggestions to the Union Finance Minister for inclusion in the budget speech. Union Finance Minister thanked the participants for their inputs and suggestions towards Budget 2023-24 and assured to examine each of the proposals.
The meeting was attended by Union Ministers of State (Finance), Chief Ministers, Deputy Chief Ministers, Lt. Governor of Jammu & Kashmir, Finance Ministers, Ministers and Senior Officers from the States/Union Territories and the Union Government. The Secretary, Department of Economic Affairs, Ministry of Finance, welcomed all the participants to the meeting and informed the importance of this particular consultation for the ensuing Budget.
Centre releases Rs. 17,000 crore of GST compensation to States
The Central government released an amount of Rs. 17,000 crore to States/UTs on November 24 towards the balance GST compensation for the period April to June, 2022 The total amount of compensation released to the States/UTs so far, including the aforesaid amount, during the year 2022-23 is Rs.1,15,662 crore.
This is despite the fact that total Cess collection till October, 2022 is only Rs.72,147 crore and the balance of Rs. 43,515 crore is being released by the Centre from its own resources. With this release, the Centre has released, in advance, the entire amount of Cess estimated to be collected this year till March-end available for payment of compensation to States. This decision was taken to assist the States in managing their resources and ensuring that their programmes especially the expenditure on capital is carried out successfully during the financial year.
Even in May this year, the Central Government had released Rs. 86,912 crore as provisional GST compensation to States for the period Feb-May’2022 despite the fact that there was only about Rs. 25,000 crore in the GST Compensation Fund, by making arrangement of funds of around Rs. 62,000 crore from its own resources.

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