-Business Standard
Serious inconsistencies in data make revenue projection problematic
States will need to be compensated for their revenue shortfall under goods and services tax (GST) even after 2022 — the sunset year for compensation under the law — because of slow revenue growth, a report commissioned by the 15th Finance Commission (FC) has noted.
It shows that states would require compensation of at least Rs 1.67 trillion in 2024-25, because none of them would be able to achieve 14 per cent growth every year.
While Karnataka would need the highest compensation among states, Delhi too would face a revenue shortfall to a great extent in coming years, the report warns.
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