Amit Mitra slams Centre for 'hiding' Rs 47,272 cr meant for states

Kolkata: State Finance minister Amit Mitra on Friday vehemently criticised the "shameful" act of the Modi government for "hiding Rs 47,272 cr from Cess Compensation Fund meant for States" during 2017-18 and 2018-19.

The Comptroller and Auditor General (CAG) of India, in its audit of the Union Government Finance Accounts (UGFA) for the financial year 2019, found that only Rs 1.64 lakh crore out of Rs 2.75 lakh crore received from 35 cesses, levies and other charges in the fiscal had been transferred to Reserve Funds or Boards during the year while the rest was retained in the Consolidated Fund of India (CFI).

The audit examination shows that there was short crediting to the fund of the GST compensation cess collections of Rs 47,272 crore during 2017-18 and 2018-19.

Criticising the Centre, Mitra tweeted: "Modi Govt caught red handed by its own CAG for hiding Rs 47,272 Cr from Cess Compensation Fund meant for States!" Raising the issue of violation of GST Compensation Cess Act, 2017, Mitra further stated in his tweet: (The amount was) "slyly put into CFundOfindia. Violating GST Act. Why?"

It has been stated that short-crediting was a violation of the GST Compensation Cess Act, 2017, and the retention of the fund in the CFI became not available for use as provided in the Act.

Mitra said it was done "to bluff us by overstating revenue collection and bluff global rating agencies by understating fiscal deficit. Shameful."

This comes when the state is yet to get more than Rs 4,000 crore as GST compensation. The Centre has not provided the same despite repeated requests from Chief Minister Mamata Banerjee when Bengal has simultaneously faced Covid and aftermath of cyclone Amphan. Instead, the Centre has come forward with the proposal of borrowing to meet the revenue shortfall.