Delay in GST compensation: Punjab CM reviews state finances

Punjab Chief Minister Amarinder Singh and Finance Minister Manpreet Singh Badal on Monday reviewed the state's finances in the wake of delay in release of Rs 4,100 crore of Goods and Services Tax (GST) compensation by the Centre.

They also discussed what the plan should be if there is a further delay by the Centre in releasing the amount to the state.

"The CM took a review meeting of the finance department on Monday," Badal said after the meeting.

During the meeting, the finance minister apprised Amarinder of the financial situation of the state.

Badal informed the chief minister that he, along with finance ministers of other states, including West Bengal and Kerala, would impress upon the Union Finance Minister Nirmala Sitharamanon Wednesday to release GST compensation.

"We will impress upon her (Sitharaman) this money must come as quickly as possible and it is a constitutional obligation of the Government of India," he said.

The state's cash flows are affected because of the delay in release of GST compensation and state's share of central taxes, he said.

There is a provision within the constitution for devising a dispute resolution mechanism in case of a dispute between the Government of India and state government.

"It can be in the form of tribunal or something within the GST Council. Some timeline needs to be given for this (release of compensation) and it cannot be an endless wait," Badal said.

GST compensation for the month of August and September is outstanding till date.

Amarinder had last week expressed shock over the delay in release of GST compensation.