More misses than hits

GST Council should have addressed pressing issues

The council that oversees goods and services tax (GST), the GST Council, met last Friday amid concern about state government finances during the second wave of the coronavirus pandemic. The Union finance ministry proposed that, once again, the Union government borrow money on the market to make up the required compensation for states, given the shortfall of revenues. The amount proposed was Rs 1.6 trillion, alongside Rs 1.1 trillion to be collected as compensation cess. But, as states pointed out, the assumptions behind this number are questionable. For one, the forecast of revenue growth of 7 per cent may not