Karnataka’s pending dues: ‘Good news’ after talks with Finance Minister, says Shivakumar
Karnataka Chief Minister D.K. Shivakumar reported positive discussions with the Union Finance Minister regarding the state's pending financial dues. He also advocated for a more measured approach to GST enforcement, cautioning against the indiscriminate arrest of traders.
Why it matters
The report touches on the ongoing fiscal tensions between state governments and the central government regarding tax distribution and regulatory enforcement.
Chief Minister D.K. Shivakumar on Thursday said he had received “some good news” regarding Karnataka’s pending dues following a discussion with the Union Finance Minister. He, however, declined to disclose details.
“I will talk about it later,” Mr. Shivakumar told reporters in Delhi after attending the GST Council meeting. He said the meeting had gone well and that Karnataka’s concerns had received broad support.
Sources indicated that the “good news” referred to pending dues of Upper Bhadra Project, to the tune of ₹5,300 crore that was announced in the Union Budget of 2023-2024.
The issue of initiating criminal proceedings and arresting those who fail to pay GST was also discussed at the meeting, he said. Mr. Shivakumar said such action should not be taken indiscriminately by officials and that the focus should be on recovering the tax dues in accordance with the applicable rules.
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