Central Efficient State Governments Needed for Timely GST Compensation Release

Union Finance Minister Nirmala Sitharaman emphasized the importance of efficiency for state governments to receive GST compensation on time. She noted that delays in payment were due to missing authentication certificates from the Accountant General. Tamil Nadu submitted certified figures late, while Kerala has not provided any certificates since 2017-18.

Sitharaman clarified that all pending payments up to May 2022, totaling Rs 86,912 crore, were cleared by May 31, 2022. She highlighted the need for state governments to streamline the AG certification process to ensure prompt fund release.

Addressing concerns about GST compensation for Tamil Nadu, Sitharaman mentioned that certified figures for 2017-18 were received and processed. Disputed amounts for 2020-21 are still under review.

In response to inquiries from Kerala MP N K Premachandran, Sitharaman revealed that the state had not submitted AG-certified statements for GST compensation from 2017-18 to 2021-22. She urged the state to fulfill this requirement to avoid delays in fund disbursement.

Premachandran raised concerns about Kerala’s financial situation, attributing the need for a fuel cess to delays in receiving GST compensation and revenue deficit grants from the Centre. Sitharaman encouraged dialogue between the state government and the Centre to resolve issues and expedite payment processing.