NEW DELHI: Spending to help India’s pandemic-hit economy is likely to face delays after the federal government and some states failed to agree who should borrow to cover revenue shortfalls.
India’s Goods and Services Tax Council, comprising federal and state finance ministers, last week extended a surcharge on luxury goods including cars and tobacco products beyond 2022 to help states repay loans raised to fill revenue gaps in the current fiscal year.
While 21 states, mainly ruled by Prime Minister Narendra Modi’s party and its allies have agreed to borrow from the market, around 10 which are run by opposition parties insist that the federal government should borrow and compensate them.
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