Kerala's GST Concerns: CM Vijayan Calls for Immediate PM Intervention

Kerala Chief Minister Pinarayi Vijayan has urged Prime Minister Narendra Modi to address the potential revenue losses for states due to proposed GST rate revisions. Vijayan emphasized the need for compensation to support welfare initiatives and highlighted the limitations on states' revenue capabilities and borrowing capacities.

Kerala Chief Minister Pinarayi Vijayan has made a direct appeal to Prime Minister Narendra Modi for urgent action on addressing the revenue shortfall that states might face if the Centre revises the GST rate structure.

Vijayan has emphasized that the proposed changes could severely impact state finances, and underscored the importance of compensating for potential revenue losses to maintain critical welfare programs. He pointed out that the division of GST revenue has already disadvantaged states like Kerala.

In his appeal, Vijayan stressed that the prime minister's intervention is necessary as discussions are underway within the State Finance Ministers' Committee, with an upcoming GST Council meeting expected to address these concerns. Balagopal, the state Finance Minister, has already warned of significant revenue shortfalls if the reforms proceed unmitigated.

(With inputs from agencies.)