With the states requiring funds to meet their expenditure at the onset of the second half of the financial year, pending compensation dues to the tune of over Rs 2 lakh crore are expected to be the contentious issue in the discussions with the Centre in the upcoming 42nd Goods and Services Tax (GST) Council meeting slated for Monday. The Centre had enlisted support of 21 states and Union Territories for option 1 under its borrowing plan to meet this year’s compensation deficit. Among the remaining 10 Opposition-ruled states, Kerala, Punjab and Chhattisgarh have already voiced their concerns that the majority view of the ruling party at the Centre is being adopted as the choice for all, even as these 10 states have still not opted for the borrowing options. in the 42nd meeting of the Council on October 5, opposition-ruled states would object to the Centre’s borrowing options and demand alternative mechanism for funding GST compensation deficit.
