Thread by @comradarjun

(thread)
How BJP diverted public fund to corporate pockets & see how Kerala govt caught them red handed

Oct 2019
BJP govt Introduced Corporate tax cut worth 1.45 lakh crore

Dec 2019
FM declared center will miss tax collection target & set 1.1 lakh crore as mop up target

1/10

So center knows this tax crisis before the covid19 pandemic

August 2020
GST shortfall pegged at 2.35 lakh crore, of which 97,000 crore is due to GST implementation and remaining due to pandemic.

2/10

August 2020
FM, Nirmala Sitharaman said

“Compensation act did not foresee an act of God and divided the 2.35 lakh crore deficit in to two”

1) 97,000 crore = Due to GST implementations

2) 1.38 lakh crore = Act of God

3/10

FM gave two option:

Take loan for 97,000 crore at interest repaid from cess after 5 years

OR

State can raise the entire 2.35 lakh crore from open market but center won’t pay for the interest only the principal amount at later date (unknown)

4/10

Kerala became the first state to reject the two proposal by Finance Ministry the same day.

5 October 2020
21 states agreed to Center and decided to borrow funds from Market

BUT

6 Non BJP state rejected both options and demanded center to borrow to meet the shortfall

5/10

Center rejected the proposal by the 6 non BJP state “asking center to take loans on behalf of states to compensate the shortfall” and the argument was “center have no obligation under GST law to compensate for the loss of revenue”

6/10

12 October 2020
9 states rejected the FM proposal and Kerala Finance Ministry Thomas Isaac said

“the Ms. Sithraman’s announcement that she is going to permit 21 states to borrow is illegal”

GST council meeting failed to reach an agreement.

7/10

14 October

Kerala government decided to move the Supreme Court against the decision of Finance Ministry allowing the BJP ruling states to illegally borrow from open market to meet the shortfall in GST which the Center was suppose to compensate.

8/10

October 15
BJP government have no option but to agree and decided to borrow for states.

Now the government of India will borrow the funds from open market and lend it to states.

This will help lower the borrowing cost of state with higher deficit.

October 16
See 👇🏼
9/10

Remember this,

What caused the fall in tax collection in the first place ?
- Economic blunders of Modi & huge Corporate Tax Cut

How center try to cover it up ?
- You know it now, right ?

In short, it’s a gratuitous transfer of public funds to corporate pockets.

10/10

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