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Increase the compensation period of the states by 5 years, says the FM of Bengal Amit Mitra | India News

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NEW DELHI: The compensation period to the states must be extended for another five years, while their debt limit must be raised to 5% of the GSDP (state gross domestic product), without any conditions that allow them to continue with the vaccination and cope to the damages caused. Over the cyclones, West Bengal Finance Minister Amit Mitra has urged Union Finance Minister Nirmala Sitharaman.
In a letter to Sitharaman, Mitra raised five points, including the need to review the projections of the gap to be financed through loans which, according to the state’s calculation, is estimated at 2.13 lakh crore rupees and not 1.58 lakh crore rupees according to what is estimated by the Center.
“Furthermore, as GST revenues have yet to stabilize and state finances are reeling under the numerous stresses of Covid-19 uncertainties and natural calamities, I also urge you to extend the compensation period for another five years beyond. July 22, ”Mitra said.
Mitra also said that the actual revenue collection of more than Rs 63,000 crore is due to the states for the period of 10 months from April 2020 to January 2021. He said that West Bengal has compensation of around Rs 4911 crore for the fiscal year 2020-21.



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