RTE 1 hour ago The government has no money to pay its bills as of yet.
It was clear from the start that the budget will be the worst in the history of the country.
The finance ministry, which has the sole responsibility for budgeting, has only about Rs 1.5 lakh crore to spend and this has been the main reason why the government is spending at the current pace.
There was no relief from the GST Council of Ministers and they will have to wait for a budget before they can implement their recommendations.
The Government of India (GII) will get only about 50% of the GST revenues for the fiscal.
The government’s failure to meet its fiscal targets will make it impossible to meet the budget targets, sources told NDTV.
In the last three years, the government has had to pay tax of Rs 40,000 crore on the sale of land to the construction companies and another Rs 30,000 crores on the loan to the banks, which was not paid.
This has made the government unable to pay the interest on the debt of about Rs 4,500 crore.
The revenue department will not release its expenditure figures till it has completed the fiscal, which will mean that the government will have no cash left to pay for its bills, the sources said.
The GST Council will meet on March 29, where it will decide whether to allow the revenue department to issue fresh bonds.
It is likely that the GST revenue will be cut by Rs 500 crore to Rs 1,500 crores, sources said.(ANI)