Why GST cess may not be enough for Centre to compensate states

While presenting the Union Budget 2020, finance minister Nirmala Sitharaman referred to the policy objectives proposed by the government towards fiscal management. Upholding the tenet of co-operative federalism, the FM announced that the shortfall in revenue collections at the state level shall be compensated by the Centre in two instalments by transferring funds to the GST Compensation Fund from…