First India-Ahmedabad Edition-28 August 2020

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OUR EDITIONS: JAIPUR & AHMEDABAD

CORONA

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ALERT AHMEDABAD l FRIDAY, AUGUST 28, 2020 l Pages 12 l 3.00

WORLD

COVID-19 UPDATE

8,32,541 2,44,85,143 DEATHS

MAHARASHTRA 23,444 DEATHS 7,33,568 CASES

CONFIRMED CASES

TAMIL NADU 6,948 DEATHS 4,03,242 CASES

www.firstindia.co.in www.firstindia.co.in/epaper/ I twitter.com/ thefirstindia I facebook.com/thefirstindia instagram.com/thefirstindia

RNI NO. GUJENG/2019/16208 l Vol 1 l Issue No. 272

INDIA

GUJARAT

61,675 33,82,152 2,964 DEATHS

KARNATAKA 5,232 DEATHS 3,09,792 CASES

CONFIRMED CASES

DEATHS

DELHI 4,369 DEATHS 1,67,604 CASES

91,329

CONFIRMED CASES

RAJASTHAN 1,005 DEATHS 76,015 CASES

FLOATING ON HOPE!

Floating vegetable markets, on the scenic Dal Lake of Kashmir, came into existence as a means of sustenance after Coronavirus pandemic hit the tourism sector the most. Many boatmen can be seen ferrying vegetables that are produced in the interiors of the lake, instead of tourists these days! —PHOTO BY PTI

‘ACT OF GOD’ MAY CONTRACT Atmanirbhar Bharat is for ECONOMY THIS FISCAL: SITA stable global order: PM My govt has been making efforts to end red tapism to help defence sector become self-reliant, says Modi

New Delhi: Claiming that an “Act of God” may result in contraction of economy this fiscal, Finance Minister Nirmala Sitharaman, who chaired the 41st GST Council meeting, said the GST shortfall in FY21 was around Rs 2.35 lakh crore. Following a marathon five-hour meeting, Sitharaman said two options of compensating states were discussed while asserting that there was no proposal to raise tax rates to make up for the shortfall. The Centre on Thursday gave two options for compensating states on the Goods and Services Tax (GST) to bridge revenue shortfall as the economy faces a prospect of contraction in

New Delhi: Prime Minister Narendra Modi said on Thursday that his government’s resolve for ‘Aatmanirbhar Bharat’ is not inwardlooking, but aimed at boosting India’s capabilities and global peace, and also for helping the world economy become more stable. Speaking at a defence industry outreach seminar, Modi said India’s self-reliance on defence capabilities will boost its standing of being a net security provider in the Indian Ocean, make it a defence supplier for many friendly countries and deepen strategic ties. Wooing private players, he asserted that the import embargo on a number of defence

—PHOTO ANI

States stare at Rs 2.35 lakh crore GST revenue shortfall; Centre gives 2 options to borrow via RBI

Finance Minister Nirmala Sitharaman chairing 41st GST Council meeting via VC where MoS Finance Anurag Thakur, Finance Ministers of States and UTs and senior officers were also present.

current fiscal year due to COVID-19 crisis. The first option provides a special window to states in consultation with the Reserve Bank of India (RBI) to provide Rs 97,000 crore at a reasonable rate of interest. This money can

then be repaid after five years from the collection of cess. The second option is that the entire GST compensation gap of Rs 2.35 lakh of this year can be met by states in consultation with the RBI. The Finance Minis-

ter chaired the meeting which was also attended by Minister of State for Finance Anurag Thakur, finance ministers of various states and union territories and senior officers from the Centre and states. Turn to P6

—PHOTO ANI

PM Modi addresses during Atmanirbhar Bharat Defence Industry Outreach Webinar via video conferencing on Thursday.

equipment is not only aimed at curbing imports but also giving a boost to the domestic industry. He said more items will be added to this import embargo list later. He noted that India has long been one of the

biggest defence importers in the world and rued that enough attention was not paid to augmenting domestic production in the past despite the country having inherited a capable ecosystem at the time of Independence. Turn to P6

SC refuses permission for Muharram processions New Delhi: The Supreme Court on Thursday declined to pass orders to allow mourning processions across the country during Muharram while observing that it will lead to chaos and the targeting of a particular community for spreading COVID-19. A Bench headed by Chief Justice SA Bobde said it will not pass orders that could risk the health of many people. “You (petitiner’s advocate) are asking for vague directions for the whole community in the country. Jagannath Puri case was one specific place where Rath was to go from point A to B. If it was one specific place we can assess the danger and pass orders,” the bench told the advocate appearing for the petitioner. Turn to P6

State will choose from Centre’s options for financial compensation Needing finances, state governments have requested Centre to take a loan and disburse compensation Haresh Jhala Gandhinagar: With state revenues hit by the recession and the lockdown that followed the outbreak of COVID-19, the Centre’s revenue has been affected as well. Now, needing finances for administrative expenses and development projects, state govern-

ments have requested the Centre to take a loan and disburse compensations for revenue loss. In turn, the Central government has decided to give the states two options on how they would like to receive this compensation. The Gujarat government will take a call on the issue at a later date.

Gujarat’s Deputy Chief Minister Nitin Patel, who is also the

state’s finance minister, stated on Thursday that all aspects of the cur-

rent financial situation were discussed in the GST (Goods and Ser-

vices Tax) council. He added that the Centre has given the state the option of seeking compensation for revenues lost due to recession while asking it to wait to seek compensation for revenue lost due to the lockdown. Patel also said that, in a video conference, almost all states had requested the Centre to borrow money and pay them compensation to offset their losses. The Centre can then recover this amount as cesses col-

lected on luxury items in imports and domestic sales. The finance minister further stated that even the Central government’s revenue has witnessed a nose dive and so it is not in a position to compensate all the states at one go. Gujarat alone is expecting compensation of about Rs12,000 crore. If this is taken as the average, the Centre would have to pay the states and Union Territories a total of Rs 3 lakh crore to compensate for lost GST revenue.

The amount to be paid to each state and Union Territory will be calculated based on factors such as population, as well as data on numbers and growth of trade and industries. Although Unlock 1.0 came into effect from July 01, consumer demand has not picked up since consumers have seen a decrease in purchasing capacity. This has affected revenue for both the state and Central governments. Turn to P6


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