The state has demanded the Centre that the states share of the revenue from the GST, which is 50% at present, should be increased to 60% since the share of expenditure of the states is very high when compared to the Centre, financeminister K N Balagopal.
As per the 15th report, 62.7% of the total revenue of the country goes to the Centre, at a time when the 62.4% of the total expenses are borne by the states. Because of this, we have said that the GST sharing should be on a 60:40 ratio and not 50:50 ratio, between the states and the Centre.
The Centre used the provision in the Constitution to impose additional cess on the petroleum tax. In 2011-12, only 10% of the total revenue of the Centre was through cess, which has now increased to more than 20%. As much as Rs 5.3 lakh crore was raised by the Centre through the cess in 2021-22 alone. This Money also should be shared with the states.