GST Showdown: Telangana Minister Bhatti Demands Protection of State Revenues

Telangana's Minister Bhatti on [date] demanded that the Centre protect States' revenues in the ongoing Goods and Services Tax (GST) reforms, warning that any decline in collections would directly affect expenditure on schools, hospitals, welfare programmes, and infrastructure. The intervention comes as the GST Council deliberates changes to the tax regime that could alter the revenue-sharing formula between the Centre and States.

Bhatti highlighted that GST accounts for about 35% of Telangana's own tax revenue, making the State highly dependent on these collections to fund essential public services. He urged the Council to ensure that any reforms include safeguards to prevent revenue shortfalls, citing the State's fiscal health and developmental priorities. The Minister's statement echoes concerns raised by several other States about the impact of GST rate rationalisation and compensation mechanisms.

The outcome of the GST Council's discussions will have significant implications for State finances across India, particularly for welfare-dependent States like Telangana. If revenues are not protected, States may be forced to cut back on critical expenditures, potentially affecting millions of citizens. The Council is expected to continue deliberations in the coming weeks, with States pressing for a more equitable revenue framework.