HD Kumaraswamy slams Centre over failure in managing economy; cites 'lack of vision'

On Saturday, former Karnataka Chief Minister HD Kumaraswamy launched a scathing attack at the Prime Minister Narendra Modi-led government asserting that states are in "dire straits" due to the failure of the Centre whose "management of the country's economy is flawed and marked by lack of vision". This remark from Kumaraswamy comes after Sitharaman on Thursday had said the economy has been hit by the pandemic, which is an 'Act of God', and it will see a contraction in the current fiscal.

Taking to Twitter, he lashed out at the Centre over several issues, and said that the irresponsible attitude of the Centre in shirking its commitment towards GST shortfall of the states is condemnable.

He further alleged that the Centre has literally ruined the economy of states, the Janata Dal (S) leader asked them to resort to borrowings to make up for GST shortfall and also repay them.

"Long ago, architect of the Indian constitution, Dr BR Ambedkar, had expressed concern that the danger of bringing about legislations that establish control over the states' economy through luring cannot be ruled out in the future. Now, the country is staring at such a danger," he said.

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'Act of God' says Sitharaman

After the 41st meeting of the GST Council on Thursday, Sitharaman in her briefing to the media said that the Centre will pay the States the compensation which strictly arises out of GST implementation. The compensation expected by the States has been estimated at Rs 3 lakh crore, of which Rs 65,000 crore would be funded from the revenues garnered by the levy of cess. In addition, the Centre has also estimated that of this Rs 2.35 lakh crore, Rs 97,000 crore compensation requirement is due to GST rollout and the remaining is on account of the impact of COVID-19 on the economy.

"This year we are facing an extraordinary situation that even below 10 per cent approximate estimation you are facing an 'Act of God' which might even result in a contraction of the economy...," Sitharaman said.

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