Former Finance Minister P Chidambaram has said that Centre’s promise on GST Compensation is just a word of comfort on a piece of paper that has no value. He said that states need hard cash. It is Centre only that has options to raise the resources to meet shortfall of GST Compensation. Axe will fall on capital expenditure by the states if states are forced to borrow. Kerala FM Issac has welcomed the stance of Centre that it never wanted to deny full compensation. He tweeted that “Glad to be corrected. But deferring half the compensation for better times,ipso facto, is deferring public expenditures to better times. It is the surest way of deferring future good days.”
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