Telangana Demands Compensation for GST Revenue Losses

In a recent plea for financial redress, Telangana Chief Minister A Revanth Reddy called on the Central government to compensate for revenue losses stemming from the latest recalibration of GST rates. The CM highlighted the Centre's earlier commitment to cover losses if the growth rate of taxes fell below 14%.

During a press conference, Reddy stressed the responsibility of the Central government, noting that state plans hinge on predicted revenues. He argued that the recent central decision on rate rationalisation necessitates compensation from above, as states prepare for fiscal shortfalls.

Following Deputy CM Bhatti Vikramarka's presentation to the Centre post-GST Council meeting, Reddy mentioned an impending letter to Union Minister G Kishan Reddy. This letter will outline Telangana's fiscal predicament and implore action towards Prime Minister Narendra Modi for necessary compensation. The state anticipates an annual loss of Rs 7,000 crore under the current GST framework.