Chief Minister Pinarayi Vijayan on Sunday demanded that the Union government review the decision to impose tax on essential items, and requested the Centre to continue the GST compensation for the revenue loss to the states for another five years.
He also sought lifting of the stringent restrictions imposed on borrowing limits of states considering the pandemic-induced adverse impact on the economy.
Addressing the seventh Governing Council Meeting of NITI Aayog in New Delhi, Pinarayi also reminded the Union government of the need to address challenges to cooperative federalism, and demanded that legislation on subjects in the Concurrent List be initiated only after adequate consultation with the states. The Centre should also desist from legislation on the items that come in the State List, he added.
The CM also sought the Centre’s support in early clearance of the state’s pending rail and air traffic proposals. He stressed that the new transport projects are eco-friendly and cause less accidents.
As part of modernising state’s roads and transportation, a time-bound completion of all projects, including National Highways development, need to be accelerated, he said in the meeting chaired by Prime Minister Narendra Modi.