Mamata says Bengal facing revenue loss due to lack of GST compensation from Centre

Kolkata, Sep 16 (PTI) West Bengal Chief Minister Mamata Banerjee on Monday lashed out at the Centre, claiming that the state was suffering massive revenue losses due to lack of GST compensation and other withheld funds.

Speaking at a programme in Kolkata, Banerjee said that West Bengal would incur a revenue loss of nearly Rs 20,000 crore, with the health sector alone bearing a burden of around Rs 10,000 crore.

"We were the first ones to raise voice, stating that premiums for health insurance should not be increased and GST must be exempted. Many people are now taking credit for this... but do you know how much loss our state will incur? Around Rs 20,000 crore... In health only, we will incur a loss of Rs 10,000 crore," she said.

"This has been dumped on the state and no compensation has been given to us. We are facing revenue loss and receiving no compensation. Other states are getting it, why not us?" she questioned, accusing the Centre of adopting a discriminatory approach.

The chief minister also alleged that all central funds meant for West Bengal have been stopped, further straining the state's finances.

Her remarks come at a time when opposition-ruled states have been voicing concerns over pending GST dues and rising fiscal stress due to central policies.

Banerjee has repeatedly criticised the Centre over what she terms as "economic injustice" towards West Bengal.

Announcing the outcome of the 56th GST Council meeting on September 3, Union Finance Minister Nirmala Sitharaman had said that all individual life insurance policies, whether term life, ULIP or endowment policies and subsequent reinsurance, are exempt from GST.

The GST Council approved limiting slabs to 5 per cent and 18 per cent, effective from September 22, the first day of Navaratri.

Almost all personal-use items and aspirational goods for the middle class, like air-conditioners and washing machines will see rate cuts.

The Trinamool Congress had earlier termed the Centre's decision to exempt life insurance and health insurance from GST a victory for common people, which it claimed was "wrested from a tone-deaf regime that only listens when forced. PTI PNT ACD