KCR - JaganUnion Government had shocked the states saying that it can not reimburse the GST losses to the States as agreed earlier citing the Coronavirus effect as an Act of God. The Center instead asked the States to take loans from RBI to cover the Revenue Shortfalls.

Even the NDA Ruled states are not happy about this proposal. Telangana Finance Minister Harish Rao announced that this proposal is not at all agreeable. He went on to say that his Government may knock the door of the court if necessary on this issue.

And on the other side, YS Jagan Mohan Reddy led Andhra Pradesh Government is the only non-NDA Government which is totally tight-lipped about this injustice. “This Government has totally submitted to Modi and Shah fearing a movement in Jagan’s cases but the consequences of this silence may be really bad,” Analysts say.

“There is no revenue Generation in this Government. The Government Revenues are already hit due to the Corona. There is no going back on the welfare schemes. Losing out Central Funds means more loans and a bigger financial crisis. The sooner they realize, the better for the state,” they warn.