(MC)
Even though as a whole states’ revenue may clip past at a CAGR of 16.6 percent in FY18 over FY16 under the GST, 11 of them may need an additional Rs 9,500 crore compensation from the Centre this year, says a report.
“All states combined will grow at a CAGR of 16.6 percent in FY18 over FY16 under the new goods and services tax regime, but since the picture at the individual state level differs, 11 states will need a Rs 9,500 crore Central support this financial year,” India Ratings said in a note today.
While large states like Andhra, Chhattisgarh, Gujarat, Himachal, MP, Odisha, Punjab and Tamil Nadu would need compensation from the Centre for any revenue loss under baseline scenario worth Rs 5,600 crore in FY18 smaller states like Goa, Jammu & Kashmir and Jharkhand would need Rs 3,900 crore compensation, the agency said.
