tax reform, setting the stage for a showdown between Prime Minister Narendra Modi’s administration and the provinces.The dispute is over 3 trillion rupees ($41 billion) that Modi’s government owes states this year, because the account from which the funds are disbursed is short by about 2.35 trillion rupees.
For now, the central administration is encouraging states to borrow the shortfall amount, promising to resume payments as tax revenue improves when the economy fully reopens from the coronavirus-induced lockdowns.Some states ruled by opposition parties have rejected this offer and have threatened action including urging the courts to intervene.“The law says that if there’s a dispute in the council a dispute resolution mechanism will.
Read more on livemint.com