Chhattisgarh government had sought full compensation to the state for the revenue loss due to phase-out of Central Sales Tax (CST).
“The state government has received Rs 800 crore less in the last three years and demanded that the amount be compensated from other sources,” Chhattisgarh Minister for commercial tax Amar Agrawal said. He represented the state at the pre-budget meeting of state finance ministers with Union Finance Minister Arun Jaitley.
Agrawal said the Union government had decided to lower the CST from 4 per cent to 2 per cent from June 1, 2008, and an agreed compensation package for consequential revenue loss to the state had been worked out. The government of India paid CST compensation for 2007-08, 2008-09 and 2009-10 as per revised compensation guideline.
“But, the Centre is yet to release Rs 3085 crore to Chhattisgarh as CST compensation,” Agrawal said, adding that he had urged the Centre to make a provision in this regard in the annual budget layout for the financial year 2014-15.
The minister also urged the Centre to allow state governments to impose service tax. Raising the issue of Compensatory Afforestation Fund Management and Planning Authority (CAMPA) CAMPA funds, Agrawal opined that the amount should be increased and a permanent fund should be established by enacting an act.The state has so far deposited Rs 2500 crore in the CAMPA fund as per the Supreme Court’s directions and Rs 600 crore has been added to the principal amount as interest.
But the state receives only 10 per cent of the principal amount annually as per the directions of the Supreme Court.
Of the total amount of Rs 3100 crore deposited in the fund, the state has so far received only Rs 600 crore.
The state government also demanded fund for the modernization of police force to tackle with the red army.
