States With Higher Number of COVID-19 Patients at Greater Risk of Fiscal Slippages: ICRA

States With Increased Variety of COVID-19 Sufferers at Better Danger of Fiscal Slippages: ICRA

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A doctor stands near a disinfectant tunnel outside a hospital where most COVID-19 patients are being treated in Jammu. (AP Photo/Channi Anand)

A health care provider stands close to a disinfectant tunnel exterior a hospital the place most COVID-19 sufferers are being handled in Jammu. (AP Picture/Channi Anand)

It mentioned these state governments which have a bigger portion of their income receipts depending on GST compensation, face larger income and liquidity threat as assortment from the cess can be adversely impacted through the yr.

  • PTI New Delhi
  • Final Up to date: April 8, 2020, 7:38 PM IST

States having greater variety of COVID-19 sufferers run the chance of fiscal slippages, as they must ramp up spending on health-related companies to include the outbreak, scores company ICRA mentioned on Wednesday.

The states which witnessed the return of appreciable migrant staff and have a sizeable variety of each day wage earners, may see a pointy rise of their income expenditure through the present monetary yr, ICRA mentioned in an announcement.

It mentioned these state governments which have a bigger portion of their income receipts depending on GST compensation, face larger income and liquidity threat as assortment from the cess can be adversely impacted through the yr.

The scores company additionally mentioned the COVID-19 outbreak would have an hostile impression on the opposite elements of states’ personal taxes, together with gross sales tax/VAT on petroleum merchandise and motor automobiles tax.

Cautious spending on non-essential companies like tourism, hospitality and recreation is prone to widen the hole between state GST assortment and the projected revenues of 2020-21, ICRA added.

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