DCM discusses shortfall of compensation cess with union finance minister

ITANAGAR, Oct 12: Deputy Chief Minister Chowna Mein discussed the modalities for meeting the shortfall of compensation cess during the continued session of the virtual 42nd GST Council meeting on Monday.

The DCM conveyed the opinion of Arunachal and fully supported the views of union Finance Minister Nirmala Sitharaman, who chaired the meeting.

The government of India has announced a set of measures to boost consumer spending and capital expenditure. This is the second fiscal support package announced to revive the Indian economy.

In a press briefing on Monday, the union finance minister announced measures to support the states’ capital expenditure in the current fiscal year.

She announced Rs 12,000 crore in special interest-free 50-year loans to be provided to the states, Rs 2,500 crore of which will go to northeastern states, Uttarakhand and Himachal Pradesh.

Fifty percent of the amount will be given initially, and the balance after the first installment.

The money has to be spent before 31 March, 2021, and can be used to settle supplier bills also. This money will be over and above the existing borrowing limits set for the states. The loan will be interest-free and the repayment will be after 50 years.

The government of India also intends to provide an additional allocation for capital spending of Rs 25,000 crore as additional budget for capital expenditure. This amount is to be provided for roads, defence infrastructure, water supply and urban development, and allocations will be made as part of the revised estimates of the budget.

The union finance minister addressed a press briefing before conducting the continued session of the 42nd GST Council meeting.

The council meeting was also attended by union MoS for Finance Anurag Thakur and finance ministers of the states and union territories. (DCM’s PR Cell)