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GST Council fails to end deadlock on compensation to states

Union Finance Minister Nirmala Sitharaman said the Centre can certainly address the cess issue by borrowing under option 1-Rs.1.1 lakh crore through a special window facilitated by RBI and Ministry.

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The Goods and Services Tax (GST) Council meeting on Monday failed to arrive at a consensus between Opposition-ruled states and the Centre on a contentious issue of borrowings to meet shortfalls in cess collections.

Union Finance Minister Nirmala Sitharaman said the Centre can certainly address the cess issue by borrowing under option 1- Rs.1.1 lakh crore through a special window facilitated by RBI and Ministry. The Centre is ready to help the States who have decided to borrow to bridge the cess shortfall, the Minister said, while briefing the media late on Monday. 

Sitharaman further stated that if borrowing would be done by the Centre it will result in a surge of G-sec yields, and borrowing costs for states and the private sector. The borrowing falls under Article 293 of the constitution and it is the state’s right to decide what they want to do, she added.

GST Council meeting

This was the third meeting in a row that discussed compensation shortfall without a decision. However, 21 states have agreed to take the resolution while the other opposition ruled states termed the process as illegal.

Kerala Finance Minister Thomas Issac objected to the announcement of 21 states that will be allowed to choose Option 1 and termed it “illegal”. He tweeted that the Option 1 involves deferment of compensation payment beyond five years  for which the council decision is crucial as per Attorney General’s opinion. He claimed no such decisions have been made in the council meeting. The announcement in the press conference is a total disregard for democratic norms, he wrote.

Further, Punjab Finance Minister Manpreet Singh Badal said there was no agreement at the meeting to the demands of 10 opposition states for dispute resolution mechanism and formation of a Group of Ministers on the issue.

Read Also: Covid-19 vaccine expected in early 2021: Health Minister Harsh Vardhan

Stressing upon the differences, Sitharaman was reluctant to term the compensation issue as a dispute. She said the absence of unanimity doesn’t mean there will be dispute. The Centre is open to discussion and the states can talk, she added.

Meanwhile, as per the Centre’s proposal, the cess collections will be used to repay the interest and principal amount of the borrowing and the deferred compensation.

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Congress, BJP attack Bhagwant Mann over remarks on Punjab blasts

Congress and BJP have jointly criticised Punjab CM Bhagwant Mann after he linked recent blasts near defence sites to political motives, triggering a controversy.

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Bhagwant Mann

A political row has erupted in Punjab after Chief Minister Bhagwant Mann linked recent blast incidents to political motives, drawing sharp criticism from both the Congress and the Bharatiya Janata Party (BJP).

The controversy follows two low-intensity explosions reported within a short span of time — one near the Border Security Force (BSF) headquarters in Jalandhar and another close to an army cantonment area in Amritsar. The incidents raised concerns over security, particularly given the sensitive nature of the locations.

In response, Mann suggested that the blasts could be part of a larger political strategy. His remarks triggered a strong backlash, with opposition parties accusing him of politicising a serious security issue.

Leaders from the Congress criticised the Chief Minister’s statement, calling it inappropriate and alleging that such comments undermine the gravity of the situation. They stressed that matters related to national security should be handled with caution and responsibility.

The BJP also joined the criticism, questioning the basis of Mann’s claims and urging the state government to focus on investigation and law enforcement instead of making political allegations.

The developments have led to an unusual moment where both Congress and BJP appear aligned in their criticism of the Aam Aadmi Party-led government in the state.

Meanwhile, the blasts themselves have intensified concerns over safety in border regions, with authorities continuing their investigation into the incidents. No casualties were reported, but the proximity to defence establishments has made the issue particularly sensitive.

The episode has further escalated political tensions in the state, with security and accountability emerging as key points of debate.

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Himanta Biswa Sarma resigns as Assam chief minister, oath ceremony likely after May 11

Himanta Biswa Sarma resigns as Assam Chief Minister after BJP-led NDA’s victory. He will continue as caretaker CM until the new government is sworn in after May 11.

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Himanta sharma

Assam Chief Minister Himanta Biswa Sarma resigned from his post on Wednesday, paving the way for the formation of a new government after the BJP-led NDA secured a decisive victory in the 2026 Assembly elections.

Sarma submitted his resignation to Governor Lakshman Prasad Acharya at Lok Bhawan in Guwahati. The Governor accepted the resignation and asked him to continue as the caretaker Chief Minister until the new government takes charge.

The resignation comes after the NDA’s strong electoral performance, where the alliance won a clear majority in the 126-member Assembly, ensuring its return to power for another term.

Oath ceremony expected after May 11

Speaking to reporters after submitting his resignation, Sarma said the swearing-in ceremony for the new government is likely to be held after May 11.

He indicated that Prime Minister Narendra Modi has been invited to attend the ceremony but is unavailable until May 11, which has influenced the tentative schedule.

Decision on next chief minister soon

Sources suggest that central observers, including senior BJP leaders, are expected to arrive shortly to oversee the selection of the legislature party leader. The newly elected MLAs will then decide on the next Chief Minister.

Despite the formal resignation, party sources indicate that Sarma is likely to continue in the role for another term, given the BJP’s strong mandate in the state.

The move marks the beginning of the government formation process in Assam following the election results declared earlier this week.

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Rahul Gandhi and Vijay alliance took shape through backchannel talks, early signals from Congress leaders

Congress outreach and political calculations led to Rahul Gandhi and Vijay coming together after the Tamil Nadu 2026 election results.

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The coming together of Rahul Gandhi and actor-politician Vijay in Tamil Nadu after the 2026 Assembly elections was not sudden, but the result of behind-the-scenes political manoeuvring and early signals within the Congress.

According to media reports, some leaders in the Tamil Nadu Congress had already sensed the scale of Vijay’s surge during the campaign, anticipating what was later described as a “wave” in favour of his party.

After the results, where Vijay’s Tamilaga Vettri Kazhagam (TVK) emerged as the single largest party but fell short of a majority, communication channels between the Congress leadership and Vijay quickly became active.

A key moment in this evolving political equation was a phone call from Rahul Gandhi to Vijay, congratulating him on the party’s strong performance. The conversation was seen as more than a courtesy, signalling the possibility of cooperation at a time when government formation required additional support.

Reports indicate that discussions within Congress weighed the political benefits of supporting Vijay, especially given the shifting dynamics in the state where traditional dominance by major Dravidian parties has been challenged.

With TVK needing allies to cross the majority mark, Congress emerged as a potential partner, leading to a broader political realignment in the state. This development also triggered tensions within opposition alliances, highlighting the strategic importance of the decision.

The evolving partnership reflects a mix of electoral pragmatism and changing voter sentiment, particularly the growing influence of younger voters, which leaders acknowledged as a key factor in the election outcome.

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