
In a letter to Prime Minister Narendra Modi, Jharkhand Chief Minister Hemant Soren wrote to Prime said that reluctance of the Central Government to fulfil its constitutional obligations regarding GST compensation goes against the interests of the States and the spirit of cooperative federalism, referring to the Prime Minister’s speech at the inauguration of the GST in July 2017. In his letter, dated September 4, he said that the portrayal of GST as a great example of cooperative federalism that would herald the inclusive growth of the nation is something he agrees to but the same time it is important to note that India as a nation can grow only if its constituent States also grow and become self-reliant.
He also stated in the letter that the Centre has deserted the states and have not fulfilled its assurance of compensating the losses that the states would suffer for the next five years.
“Reluctance and inability of the GOI to give full compensation to the States is a betrayal of the commitment it made in the Union Parliament and also in all the council meetings held so far (sic),” the chief minister said.
“Jharkhand contributes to compensation fund a cess of nearly Rs 5,000 crore from the mineral sector alone. What we get in return is just a paltry sum of nearly Rs 150 crore as monthly compensation. And now we are being asked to borrow at a time when the state is hard-pressed to fulfil salaries of government servants,” he added.
He also mentioned the weak state in which the economy of Jharkhand is functioning right now which is creating hindrance in supporting farmers, migrant workers, those in the unorganised sector and unemployed youths.
“At this critical juncture, we naturally expected you to give us more than just the admissable compensation. We also expected you to announce that the GST compensation would continue even beyond the original period of five years,” he said and urged the Prime Minister to intervene in the matter and issue directions to the ministry concerned for the release of the compensation amount.