Goa requests special support from GST Council, 11% revenue loss for 2022

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Jul 22, 2022 | 06:25 IST

Goa requests special support from GST Council, 11% revenue loss for 2022

Team Herald

PORVORIM: With measures taken to manage expenditure, increase revenue and plug its leaks, Goa government is confident of crossing comfortably after sunset the five-year assured compensation for states under the the goods and services tax (GST).

Chief Minister Pramod Sawant said the state has already asked the GST Council for special support for small states from the central government.

“However, with the growth of taxes coupled with smart control through systemic interventions and measures taken for expenditure management and increased revenue by the state, there is no question of financial instability,” he said in response at the Goa Assembly to an attention calling motion tabled by Vasco MLA Krishna Salkar.

Sawant said the loss of state revenue since the inception of the GST can be pegged at 8.8% from 2018 to 2021 and 11% for 2022.

Sawant pointed out to the House that the 5-year period cited by the National Institute of Public Finance and Policy (NIPFP) in its report includes two years of the Covid-19 pandemic, which is an abnormal period in itself, and does not cannot be taken into account for analysis purposes.

Sawant said the compensation was based on an assumed 14% annual revenue growth on an annual basis; however, actual tax growth was around 7.5% to 8% in the post-GST regime due to the new system and the pandemic.

“So the compensation received actually got the state through the tough times of Covid. The system has now stabilized and the period 2021-2022 and the first quarter of 2022 has shown over 40% growth in Department revenue consistently over the past 1.5 years,” he said. declared.

For the current financial year April to June, the total GST collection is Rs 1,389 cr.

The amount of compensation of Rs 1,291 cr. for the year 2021-22 has already been received from the Centre, he said.

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