New Delhi: A delegation of state finance ministers met with Union Finance Minister Nirmala Sitharaman here on Wednesday to discuss GST compensation.
“Finance Minister Sitharaman did not specify the reason why compensation to states is being held up. Centre owes Delhi Rs 3,600 crore for three months,” Delhi Deputy Chief Minister Manish Sisodia said. “Compensation for August and September have not been paid and now compensation for October and November are due too. The Finance Minister did not give a timeline for the release of funds but she has assured money will be released soon,” Punjab Finance Minister Manpreet Singh Badal said after the meeting.
Echoing the view, Rajasthan Technical Education Minister Subhash Garg said the state is facing problem due to delay in payment of compensation. It is the money of the states, it should be paid, he added.
For the improvement of Centre-State relations, Garg said there is a need to develop a mechanism and the Finance Minister has heard this concern.
The finance ministers of Delhi, Punjab, Puducherry, and Madhya Pradesh and representatives of the governments of Kerala, Rajasthan, Chattisgarh and West Bengal attended the meeting.