<p>The Lok Sabha on Friday passed the first batch of supplementary demands for grants authorising the government to spend an additional Rs 2.35 lakh crore, mainly to meet people-centric expenditures rising out of Covid-19 pandemic.</p>.<p>Of the gross Rs 2.35 lakh crore, Rs 1.67 lakh crore will be the net cash outflow, while the rest will be made available through Centre’s savings on several schemes.</p>.<p>Replying to the discussions on the supplementary demands for grants, Finance Minister Nirmala Sitharaman said the argument that States have not been given an adequate share of tax collected by Centre does not hold ground.</p>.<p>“Centre has devolved 107% of the taxes collected to states. It has not kept anything for its own expenditures. That is being done through borrowings. That is the whole story,” Sitharaman said replying to the members, most of whom expressed concerns on deteriorating finances of States.</p>.<p>As far as the GST compensation is concerned, the minister vehemently denied the demand that Centre should pay to states saying the Centre’s finances had weakened due to pandemic and that rules did not allow her to pay to states from the Consolidated Fund of India.</p>.<p>“With folded hands, I want to tell the Opposition not to raise doubts on the sincerity with which the government is helping the states during Covid times. It is being done directly under the guidance of the Prime Minister,” she said.</p>
<p>The Lok Sabha on Friday passed the first batch of supplementary demands for grants authorising the government to spend an additional Rs 2.35 lakh crore, mainly to meet people-centric expenditures rising out of Covid-19 pandemic.</p>.<p>Of the gross Rs 2.35 lakh crore, Rs 1.67 lakh crore will be the net cash outflow, while the rest will be made available through Centre’s savings on several schemes.</p>.<p>Replying to the discussions on the supplementary demands for grants, Finance Minister Nirmala Sitharaman said the argument that States have not been given an adequate share of tax collected by Centre does not hold ground.</p>.<p>“Centre has devolved 107% of the taxes collected to states. It has not kept anything for its own expenditures. That is being done through borrowings. That is the whole story,” Sitharaman said replying to the members, most of whom expressed concerns on deteriorating finances of States.</p>.<p>As far as the GST compensation is concerned, the minister vehemently denied the demand that Centre should pay to states saying the Centre’s finances had weakened due to pandemic and that rules did not allow her to pay to states from the Consolidated Fund of India.</p>.<p>“With folded hands, I want to tell the Opposition not to raise doubts on the sincerity with which the government is helping the states during Covid times. It is being done directly under the guidance of the Prime Minister,” she said.</p>
