Tax Proposals – Those who still need to approve – especially for state governments expected government revenue. Economists like IDFC First Bank Gaura Sen Gupta have estimated the total expenditure of Rs 1.8 lakh crore ($ 8.7 billion) every year, and the Federal government has faced net revenue of 0.15% of the total domestic product of approximately 5.6% of GDP.
Earlier, there is a possibility of increasing financial tensions between New Delhi and the states, who have previously removed the Modi government from the revenue sharing.
Some states say that when GST was identified, they were not compensated for, which gave them a limited way to increase revenue by themselves. Punjab Finance Minister Harpal Singh Chema told reporters on Wednesday that since the launch of the GST, his state has been losing Rs 5 billion annually and has asked for a new mechanism to compensate for such losses. The rich anti-school southern states have long been argued that much of the tax they obtained has been diverted to the north, where Modi’s ruling party has to face a great deal.
“The states are afraid of further loss of revenue, so their budget depends on the center to create a target,” said Shumita Devishwar, chief economist at Globalta.T.
Former Kerala Finance Minister Thomas Isaac, along with some leaders, have been mixed with state reactions so far. They have called the movement “destructive” in one position on X, while others say they want more time to weigh the result. Tamil Nadu Finance Minister Thangam, the then Tamil Nadu-Minister, has often said that the state-of-the-art state-of-the-art state-of-the-art state-of-the-arts will have to “study the proposed GST arguments” and other departments for the evaluation of revenue hit.
Karnataka Revenue Minister Krishna Baire Gowda told local media, “Any major shock in GST will fund the financial health of the states.”
These changes can be announced by the Hindu Festival of Diwali in October to further complications to the opposition parties, which came before the elections in the East Bihar state, where the Modi government could be used to fall victim to voters.
“If any GST cut, consumers and consumers go to the customers, there is the ability to create a goodwill for the ruling alliance in Bihar,” said Rashid Kidwai, a colleague at the New Delhi -based Observeer Research Foundation. Controlling the lower hall of the National Parliament runs the local party’s state under the leadership of Modi’s chief Nitish Kumar in the COOal alliance.
The government is pursuing immediate amendment. Home Minister Amit Shah started planning to discuss with the State and Federal Ministries in July to unanimize in July, the Indian Express said. After a few days of Modi’s announcement of the GST reform, he appealed to the states to support the move.
States depend on the income of GST, which are more than 40% of their tax receipt. Before the introduction of the GST, Indian states had autonomy to impose and increase their own taxes on goods and services. Unified GST removed the states of that power, which enable them to independently tax some items such as petroleum products and alcohol.
States like Punjab, Andhra Pradesh, West Bengal and Kerala have faced financial tensions due to weak revenue mobility, advanced financial deficit, heavy debt burden and weak quality of expenses.
New Delhi officials said that after the federal and state revenue changes, they would submerge in small-scale but gradually with strong use. Officials officials told reporters that states should not be known to discuss private matters to increase their taxes on alcohol and petroleum to increase their possession.
This week, a committee of state finance ministers of Modi’s Bharatiya Janata Party and opposition parties has discussed the tax proposal this week. Finance Minister Nirmala Sitharaman submitted the recommendations of the Federal Government at a panel meeting on Wednesday.
The final recommendations of the panel will then be submitted to the GST Council – which is the president of the finance minister – and all the state finance ministers. The Council is expected to take the matter next month or early October.
There is a final saying of the conference on tax rate changes. Most of the decisions so far have been approved unanimously, but if necessary proposals can be voted and three quarters must pass. In such a case, the ruling BJP – which controls the states of the state and eight unions of the 4 states – will not have much trouble to take these measures, Kidwai said.
“The government should take everyone to the board when they have the majority of states to do democracy,” said Neeraja Chaudhary, a political analyst in Delhi. The “Trust deficit” between the anti-school states and the federal government must be addressed to the GST reforms. ”
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