Bengal FM Mitra slams Centre over failed policies & unpaid GST dues

New Delhi: West Bengal Finance Minister Amit Mitra on Thursday slammed the Centre over the current economic slowdown, saying that core industries in the country are under recession due to the 'failed and unprepared policies' – demonetization and GST – by the maiden Modi government.

Emphasising on the government data, the former FICCI chairperson said, "This is severe. In some cases, there is a growth recession and somewhere it is shrinking."

He also mentioned the declining growth rates in important sectors in the current year from the government data - mining (-8.5, till September 2019), manufacturing (-3.9, till September 2019), electricity (-2.6, September 2019) and in general (-4.3, September 2019).

Besides, in the coal sector, the growth rate is -3.5 in 2019-20, crude oil is -6.0 for the same period, natural gas sector is -2.0, the refinery is -2.0, cement is in 0.7 growth rate for the same period and fertilizers

is -1.1.

He termed the demonetization as a 'structural hit' to the Indian economy and a 'Tughlaki hara-kiri'. This further brought down the GDP for certain quarters. Adding more, in seven months of the implementation of demonetization, another structural attack was done through the 'hasty' implementation of GST.

"The government and then finance minister Late Arun Jaitley was told by the Finance Commission that the GST Network is not prepared. But there was an instruction to announce the implementation of GST with the 'Tryst with destiny' at the Central Hall of the Parliament," the Bengal Finance Minister said.

He also claimed that demonetization divided the society between rich and poor, whereas massive corruption has taken place through GST filings. "The MoS Finance, Anurag Thakur, himself mentioned in Rajya Sabha in his written reply that there is a total GST fraud of Rs. 44066 crore. Where I believe the amount should be around Rs. 1 lakh crore," Mitra said.

The West Bengal finance minister said he had written a letter to Union Finance Minister Nirmala Sitharaman on the GST fraud, however, the reply has not been received yet. He further claimed that the centre is reluctant to discuss such important issues.

Recently, many states, including West Bengal, raised concern

over their pending GST compensation and accused the Union government of creating a financial crisis

for them.

The minister rather refused to see the crisis in any political slant and said, "I do not think only the non-BJP states are yet to receive CGST compensations for the month of August-September, but there are many BJP ruled states, which have not received their dues yet." "Not paying the GST compensations is a violation of the Parliamentary amendment," Mitra asserted.

According to the Goods and Services Tax (Compensation to States) Act, the compensation to the states for the loss of revenue arising on account of implementation of the GST in pursuance of the provisions of the Constitution (One Hundred and First Amendment) Act, 2016.

Hence, the states feel this as a "serious attack of fundamentals of the foundation". This 'pathetic' condition of the Indian economy is an example of "trust deficit". Economic growth needs trust, Mitra said.