GST compensation row: States' revenue fell 18% in first quarter, shows data

It is, by all counts, their bleak financial position that has made states take up arms against the Centre’s proposal on compensation to them under the goods and services tax system.

According to an analysis by Motilal Oswal Institutional Equities, the receipts of 14 states declined 18.2 per cent during the first quarter of 2020-21 on a yearly basis, while spending grew just 2.7 per cent. Details suggest the states’ tax receipts (including the Centre’s devolution) fell 32.1 per cent and non-tax revenues declined 27 per cent in this period.

Conversely, grants from the Centre grew by 56 per cent