New Delhi: Chief Minister Basavaraj Bommai has requested the Union government to extend the GST compensation for a period upto 2024-25.

Bommai made a request during his meeting with Union Finance minister Nirmala Sitharaman in New Delhi on Monday.

The period of GST compensation, being paid by the Union government, is set to end in March 2022. But the states are facing a resource crunch due to Covid 19 impact. In this background the Union government should extend the GST compensation time limit upto 2024-25 to help the states, Bommai requested.

The Union government had provided GST compensation for the last two years through loans. The same gesture should continue for three more years and the loans could be repaid through a collection of GST Cess, the Chief Minister conveyed to the Finance Minister. 

Bommai seeks Rs.5030cr for Kalyana Karnataka

Mr. Bommai has also placed a request before the Union Finance Minister Nirmala Sitaraman for a grant of Rs.5030cr for all-round development of the Kalyana Karnataka region under various central sponsored programmes.

In accordance with the discussions held recently at the Conference of South Zone Board, Andhra Pradesh had sought a special grant for the development of its backward districts. Similarly, Karnataka too had pointed out that the Kalyana Karnataka region had many districts that were among the most backward in the country. Special status has been accorded for the region through amendment of article 371(J) of the Constitution, Mr. Bommai mentioned during his meeting with the Union Finance Minister.

Bommai held meeting with MPs

Chief Minister has held elaborate discussions with Karnataka MPs in Delhi about the pending central projects in the state.

Central projects related to the state in Irrigation, Railways, Urban Development, Ports and Highways departments came up for discussion at the meeting with MPs of the State.

After meeting with Karnataka MPs including Union Finance Minister Nirmala Sitharamana, Union Law and Parliamentary Affairs minister Prahlad Joshi, Mr. Bommai said that  "We had cordial discussions on issues to be raised at the Centre,".

Chief Minister has said that Nirmala Sitaraman has assured of all measures to implement all the projects announced in the Union Budget. She has also assured all the grants for the state under the 15th Finance Commission will be released.

"During the meeting with the Finance Minister we also discussed the Rs.1 lakh crore capital grant in the form of interest-free on a 50-year term. The share of Karnataka is estimated to be around Rs.3800 cr to Rs.4000 cr in the capital grant," Bommai said.