Centre should help States to overcome crisis: Balagopal

‘GST has benefited only corporates, business houses’

The Centre should help the States to overcome the unprecedented socio-economic crisis and economic slowdown caused by the pandemic rather than pushing them into further financial crisis, Finance Minister K.N. Balagopal has said. “A more healthy relationship is needed between the Centre and the States to overcome the difficult times. In cooperative federalism, the Centre and States share a horizontal relationship, where they cooperate in the larger public interest. The Centre should extend more help to the States financially to meet the pressing demands of the people,” Mr. Balagopal told The Hindu. Pointing out that the tax rate is arbitrary, the Finance Minister said the average tax rate had come down from 16% to 11.5% in five years of the GST regime. The loss suffered by a consumer State like Kerala is huge and cannot be compensated. The States can decide on taxation of petroleum products and alcohol only. Mr. Balagopal said GST had benefited only corporates and business houses.