Opposition slams govt over GST compensation

BENGALURU: Led by Leader of Opposition Siddaramaiah and former representative of state in GST Council Krishna Byregowda, the Congress and JDS lashed out at the government for failing to protect economic interests of the state. “It is a sadistic move by the Union government to compel states to borrow to offset GST compensation losses when they can raise resources without losing a paisa. The cess account of GST Council can be used to pay the states, but the Centre is shirking its responsibility,” Byregowda said. 

Siddaramaiah warned that the government’s move to borrow heavily will leave the state debt-ridden. “People of Karnataka have given you 25 MPs, for what? Finance Minister Nirmala Sitharaman, who represents this state in Rajya Sabha, rejected the 15th Finance Commission’s recommendation to give special grants to Karnataka. We can’t simply borrow because we can. We have to worry about repayment too,” he said. 

Law and Parliamentary Affairs Minister J C Madhu Swamy defended the government, saying borrowings to offset GST compensation would be repaid by the Union government through cess, but the state will fight for another Rs 7,000 crore dues. The Karnataka Fiscal Responsibility Act (Amendment) Bill 2020 was passed amid furore in the assembly.

Panchayat Bill passed
Amid opposition, the Karnataka Gram Swaraj and Panchayat Raj (Amendment) Bill was passed on Friday. With this, the term of president and vice-president in panchayats has been reduced to 30 months from five years, the change in reservation status will be allowed once in five years, instead of 10 years now, and the number of days liquor shops should be closed before panchayat elections has been reduced from eight days to two. Leader of Opposition Siddaramaiah and former Speaker Ramesh Kumar objected to the amendments, saying it will defeat the very purpose of decentralisation.