GST compensation row: State govts ask Centre to borrow and pay

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Terming the two options proposed by the Union government as “unconstitutional,” “illegal” and “a betrayal of the spirit of cooperative federalism,” key opposition-ruled states pressed the Centre to borrow in order to compensate states for the entire goods and services tax (GST) shortfall ‘regardless of Act of God’.


While six states – Kerala, Telangana, Chhattisgarh, Delhi, Punjab and West Bengal – huddled over a video-conference meeting on Monday to thrash out a strategy to take on the Union government, some states separately shot off letters to the Centre, expressing disapproval of putting the onus of borrowings on states.



Tamil Nadu chief minister Edappadi K Palaniswami wrote to Prime Minister Narendra Modi, arguing that the Centre had a moral and legal obligation to compensate states for the GST shortfall.


Meanwhile, Punjab and Chhattisgarh chief ministers wrote to Union finance minister Nirmala Sitharaman, contesting the growth assumptions and the concept of bifurcating revenue loss figures into Covid and non-Covid.


The finance ministry on Saturday officially communicated the finer details of the two options to states to make up for the compensation shortfall by way of borrowings.


The

Ambani-Biyani deal: Retail arm leads Future firms’ rally on bourses

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In a weak market, the listed stocks of Future Group were the biggest gainers on Monday. The gainers were led by Future Retail (FRL), which was up 20 per cent. Most other stocks hit their upper circuit, gaining 5 per cent each. As part of the deal announced on Saturday, Future Group will be selling its retail assets to Reliance Retail in a deal pegged at Rs 24,713 crore.


Listed entities of the group will merge into Future Enterprises (FEL) at a determined swap ratio before the asset sale to Reliance Retail. Some brokerages believe the swap ratios are favourable and, therefore, there are substantial upsides for shareholders of Future Lifestyle Fashions (FLFL), FRL, and Future Consumer (FCL).


ALSO READ: Reliance Retail likely to cut down on back-end staff after Future deal



Based on the swap ratio, analysts at Antique Stock Broking peg the intrinsic value of FLFL, FRL, and FCL at Rs 234, Rs 204, and Rs 18, respectively. Even after the increase in prices, the stocks could see more upsides. While the upside for FLFL and FCL is pegged at around 50 per cent each, that for FRL is at

Biden Calls For End To ‘Lawlessness’ In Protest-hit US Cities

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Democratic White House hopeful Joe Biden on Monday called for an end to “lawlessness” and violence in protest-hit US cities, while blaming Donald Trump’s “toxic” presidency for fueling unrest that has left several people dead.

“Looting is not protesting, setting fires is not protesting. None of this is protesting. It’s lawlessness, plain and simple, and those who do it should be prosecuted,” Biden said in a speech in Pittsburgh — at which he also charged that Trump was “part of the problem.”

“Our current president wants you to live in fear,” charged the 77-year-old Democrat. “He advertises himself as a figure of order. He isn’t. And he’s not been part of the solution thus far. He’s part of the problem.”

“Donald Trump has been a toxic presence in our nation for four years,” he added.

“The incumbent president is incapable of telling us the truth, incapable of facing the facts and incapable of healing,” Biden offered in a stinging rebuke.

But Biden’s remarks were also the strongest condemnation yet of the deadly violence that has gripped two US cities in particular — Kenosha, Wisconsin and Portland, Oregon — where protests against racial injustice have raged and three people have been

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