Routine and essential works of the state governments will be delayed due to lack of money if the Central Government passes the GST Act and imposes it on the states.
Indira Hridayesh, Finance Minster, stated this while addressing the bi-annual conference of Vanijaya kar Sewa Sangh office at Ramnagar.
Dr Hridayesh said the states run out of money received from commercial tax and most of their expenditures are done from it. If it ceases to be with the state governments after the GST Bill gets passed, states such as Uttarakhand would face difficulties in meeting their expenditures. “We have not received our share in VAT from the Centre yet,” she said.
Over Rs 5 crore commercial tax was received by the state exchequer on daily basis and it helped run the state as routine expenditures of the state were met with it while funds released from the Centre were received late.
“As soon as the GST gets implemented, states, such as Uttarakhand, will be totally dependent on the Centre for their development and existence as their sources of immediate revenue will be gone,” Indira Hridayesh added.