Raise States' Borrowing Limits: Bengal To Union Finance Minister

Bengal Finance Minister Dr Amit Mitra also expressed disappointment over the proposal of hefty GSTs on items required to fight the pandemic.

The West Bengal government on Friday suggested to Union Finance Minister Nirmala Sitharaman that the borrowing limits of states be raised to 5 per cent of the gross state domestic product (GSDP) without any condition to save them from a financial crisis. In a letter to Ms Sitharaman, state Finance Minister Dr Amit Mitra also expressed disappointment over the proposal of hefty GSTs on items required to fight Covid-19 at the GST Council Meeting held on May 28. "You are aware that just like last year, there has been (a) sudden dip in revenue, threatening the fiscal viability of the states. In our case we have been hit by a double whammy -- of a second wave of Covid-19 and the Cyclone Yaas," the letter read. The Goods and Services Tax (GST) compensation due to the states from April 2020 to January 2021 has been estimated at Rs 63,000 crore, out of which West Bengal expects Rs 4,911 nominal gross state domestic product crore, Mr Mitra said.