Chandigarh, August 31: Days after Union Finance Minister Nirmala Sitharaman suggested two options to States to fill the Rs 2.35 lakh crore Goods and Services Tax compensation gap, Punjab FM Manpreet Singh Badal wrote to Union Minister. Badal cited the options as a clear breach of the solemn and betrayal of the spirit of cooperative federalism.

Expressing his opinion on the two options provided by the Union Finance Ministry, Badal said, as quoted by news agency ANI, "We take both options with great regret as a clear breach of the solemn and constitutional assurance by the Centre. We believe this as a betrayal of the spirit of cooperative federalism that formed the backbone of GST-journey so far." GST Compensation to States: Tamil Nadu CM Edappadi Palaniswami Writes to PM Narendra Modi, Reiterates 'Centre Should Advance Funds to the GST Compensation Cess Fund'.

Here' what Punjab FM wrote:

This is the second letter of the day the Centre on GST compensation. Earlier, Tamil Nadu Chief Minister Edappadi K Palaniswami wrote to Prime Minister Narendra Modi and expressed his concerns on the two options offered to States after 41st GST Council Meeting. Palaniswani also reiterated the State government's stance that the Centre should advance funds to the GST Compensation Cess fund if need be by borrowing in the market and service the debt by an extension.

(The above story first appeared on LatestLY on Aug 31, 2020 03:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).