Honour Jaitley’s grand bargain on GST compensation for states
The Centre should uphold its end of the deal with states as it would not only be more efficient but also help foster federalism
The last thing India needed at this time, when it is already facing crises on multiple fronts, is friction in Centre-state relations. Yet, relations between the Centre and states, especially those ruled by non-National Democratic Alliance political parties, are under severe stress. An impression has formed that the Centre is trying to wriggle out of its responsibility to compensate states for the shortfall in their goods and services tax (GST) revenues as per legally specified norms. A serious trust deficit has emerged.