Raipur, Aug 31 (PTI) Chhattisgarh Chief Minister Bhupesh Baghel on Monday asked the Centre to borrow loan and pay GST compensation due to states.

In a letter to Union Finance Minister Nirmala Sitharaman, Baghel sought Rs 2,828 crore for the state as GST compensation due for the financial year 2020-21, an official statement here said

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The Centre has put forward the option before states(at the 41st GST Council meeting last week) to take loan to deal with the shortfall in GST compensation.

"You are well aware that as per constitutional provisions, the Centre is accountable for providing GST compensation, Baghel said in the letter.

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If states borrow loans for the purpose, then the financial burden would fall on the states.

"Receiving the cess for GST compensation by the Centre and repaying loan by the state through it will be a complex and uncertain process, he said.

Therefore, in my opinion instead of states, the Centre should arrange the amount by taking loan itself or through other resources for providing GST compensation, Baghel, who also holds the finance portfolio, said.

He said the state government is yet to receive Rs 2,828 crore in GST compensation from the Centre even though five months of the current financial year have passed.

The amount should be provided to the state without any further delay, he demanded.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)