States seek a raise in central taxes, GST cess extension

The states on Sunday used the forum of the governing council of the NITI Aayog to raise the issue of their dwindling resources. They demanded that the Centre increase their share in central taxes and extend goods and services tax (GST) compensation to them.

- INDIVIAL DHAMANA

The council meeting, chaired by Prime Minister Narendra Modi, was, however, boycotted by Telangana chief minister K Chandrashekar Rao (KCR). This move by KCR was a "mark of protest" against the NDA government for not giving states the "flexibility to design and modify schemes based on their needs." NITI Aayog is mandated to boost cooperative federalism in the country.

Bihar chief minister Nitish Kumar also did not come to the meeting citing health reasons.

However, West Bengal Mamata chief minister Banerjee, a critic of the Modi government, joined after successive boycotts in the past.

Banerjee emphasised that the Centre should look into the demands of state governments "more seriously." She also said that no policies should be forced on them.

"The Chhattisgarh chief minister (Bhupesh Baghel) demanded an increase in the state share in central taxes, citing that the burden on the resources of states has been rising," an official said in a statement.