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GST Council meet: States accuse Centre of 'arm-twisting' them to borrow

Even BJP-ruled states like Karnataka suggest central govt should borrow to compensate states

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Centre gave the states the option to either borrow Rs 97,000 crore (shortfall according to the formula given under the law), or the entire Rs 2.35 trillion that accounts for the excess shortage in view of the Covid disruptio | (Illustration: Ajay Moh

Dilasha Seth New Delhi

5 min read Last Updated : Aug 28 2020 | 2:23 AM IST

Following a five-hour-long GST Council meeting on Thursday, states accused the Centre of ‘arm-twisting’ them to borrow, terming it a ‘betrayal of federalism’.

Despite being given seven days to examine the two options offered by the Centre, they turned those down minutes after the meeting concluded. Most states pressed for borrowing by the Centre to compensate them for the shortfall in collections.

During the meeting, the Centre gave the states the option to either borrow Rs 97,000 crore (shortfall according to the formula given under the law), or the entire Rs 2.35 trillion that accounts for the excess shortage in

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