States are seeing their major sources of revenue, GST from transactions, excise duty on liquor and VAT from petroleum products, have fallen due to the lockdown New Delhi: State finance ministers on Monday said that the coronavirus crisis is rattling their economies as revenue gaps, borrowing limits and the risk of falling fund transfers from the Central government make them helpless amid the pandemic.
Punjab finance minister Manpreet Singh Badal said at a webinar hosted by the Gulati Institute of Finance and Taxation (GIFT) in Kerala that the combined fiscal deficit of central and state governments this financial year could touch 10% of GDP without making any extra spending to fight back the pandemic, due to the fall in economic activity.