GST reforms may hit revenue, but will benefit people: Khanna

Lucknow: The new GST reforms may hit the revenue of the state, but in the long run it will be beneficial for the public, UP finance minister Suresh Khanna said on Friday. "The state is well prepared for any situation. However, the chances of any deficit are minimal as the demand is set to rise after the drop in GST rates. It has been seen that tax reforms have resulted in a surge in demand that will plug any shortfall due to decrease in tax rates," he said.Khanna, who was also a part of the GST Council meeting, said that the decision was taken after a marathon meeting that went on for 10-11 hours in New Delhi. Replying to criticism of the move by the Congress, Khanna said, "What the Congress is saying hardly matters as representatives of Himachal Pradesh, Karnataka and other Congress-ruled states welcomed the reforms in the meeting. The decision on GST reform was unanimous.""The govt works not to earn profit but to ensure that more people get satisfied with its decisions," Khanna said, adding that he sees no reason why the economic condition of UP would not improve in the long run.He expressed confidence that the goal to make UP a trillion-dollar economy would be achieved. "The UP govt's budget outlay is expected to remain within the FRBM limit of 3.5% if energy reform is included," he said. He refused to predict the expected shortfall due to GST reform but said that UP govt was prepared to bear the impact of the move. "Since several items that were in 12% slab have been shifted back to 18%, the extra 6% GST will cover for the losses, if any," he added.He exuded confidence that the economic condition of the state was sound. "The state is paying Rs 53,000 crore as interest on loans. Huge loans are given to states which have a good track record and healthy economic condition," Khanna said. He added that the GST collection helped the state in meeting various requirements like waiver of farmers' loans in the first year of the Yogi govt. "The govt will ensure that the benefit of GST reforms reaches the last man of the society. We hope that purchasing power of the people will increase with double benefits of income tax relief and GST reforms," Khanna said.