This is part of the first batch of Supplementary Demands for Grants for 2020-21 moved by Finance Minister Nirmala Sitharaman in the Lok Sabha.
As the Centre and non-BJP ruled states continue to face off over the mechanism to meet the compensation deficit under the Goods and Services Tax (GST) regime, the Union Finance Ministry is unlikely to cede to the states’ demand that the borrowing should be done by the Central government. In fact, government officials pointed out that states had parked about Rs 1.8 lakh crore in T-Bills, suggesting that they were not short of funds.
“While it is true that states too are keeping the powder dry,…
