Centre allocates over Rs 247 crore as GST compensation: Bedi

Puducherry, June 5 (PTI): Lieutenant Governor of Puducherry Kiran Bedi on Friday said the Centre has issued an order to release Rs 247.75 crore to the Union territory as GST (goods and services tax) compensation for December 2019 and January-February this year.

The former IPS officer told reporters that allocation of the sum wouldreduce the fiscal stress on the territorial administration.

She said the elected government had sought her approval to use the public fund, but she had asserted that the fund was not the government's and that it was held in trust.

The fund consists of general provident fund, civil deposits and insurance money of government servants for disbursal of salary to the staff for May 2020.

She said she had asked the government not to draw from the public fund, instead deposit it with the Reserve Bank of India (RBI).

'The government can avail itself of an advance from the RBI and disburse the salary. This is to ensure non-diversion of funds held in trust. The Centre issued an order to release Rs 247.75 crore as GST compensation for Puducherry for the months of December 2019 and January and February this year.

This will reduce the financial stress on the Union Territory administration,' she said. PTI COR NVG NVG