As India reaches the eighth month of its battle against the COVID-19 pandemic, with no foreseeable end, states and urban local bodies are severely cash strapped. A situation, which has been exacerbated by the Central government issuing various orders during and after the lockdown on policy issues strictly within the domain of states, such as prohibiting the sale of alcohol, restricting inter-state and intra-state movement, and withholding the GST compensation that each state government is entitled to. According to a report in the Bloomberg Quint, many states’ share in the Central Goods and Service Taxes constitutes an average of only 16-30%. The burden of raising remaining…
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