GST will push growth in states under PM Modi's 'New India' vision: Shivraj Singh Chauhan

The BJP government in Madhya Pradesh believes that the introduction of GST from July 1 will not only boost its economy, but will transform the state into a logistics hub. This apart, the government hopes that farm income will double by 2022, owing to the 24 per cent farm growth and a slew of initiatives. In an exclusive interview with DNA's Sanjay Jog, Madhya Pradesh Chief Minister Shivraj Singh Chauhan explains his government's strategy. Edited excerpts:

The Opposition is blaming you for opposing GST during the UPA rule. Has there been a shift in your stand?

Let me set things straight. I never opposed GST for the sake of the Opposition. I wanted a clear provision for compensation to states be incorporated in the GST Bill . However, the bill tabled by the UPA government had not put in place a comprehensive compensation mechanism for states. Besides, during the UPA rule, I demanded that essential commodities consumed by the underprivilged should not become dearer after the implementation of GST. If one rate is applied, then there was every possibility that goods consumed by the rich may become cheap, while the poor will have to shell out more for the same. There were differences in opinion on these issues.

The NDA government has successfully sorted out these issues. More importantly, Finance minister Arun Jaitely allayed fears, especially on the compensation issue. All the other states are on board with the plan.

How will Madhya Pradesh, which was once a BIMARU state, benefit from GST?

The implementation of GST will help increase the taxation base, and it is estimated that the Centre's revenue collection will surge to Rs 30 lakh crore. Naturally, the states will get additional funds which they can use for development projects. This will certainly push growth across various states, including Madhya Pradesh. The state's 7.5 crore population provides a big consumer base as the GST regime is expected to increase spending.

The introduction of GST will also help the state become a logistics hub. It is ideally located to facilitate transfer of goods. The government already has an innovative policy in to meet its aim. If requires, we will amend the policy once GST is launched.

Some states argue that their dependence on the Centre will increase after GST is implemented, and that there will be a centralisation of funds. Do you agree?

Prime Minister Narendra Modi has adopted a 'Team India 'model which allows for cooperation between the Centre and states. The states will benefit from the GST regime. There has already been an increase in tax devolution to states from 32 per cent to 42 per cent. States now get more untied funds. In the first year itself, the state received Rs 10,000 crore.

Moreover, due to GST, the losses incurred by industry and trade in view of multiple taxes will reduce drastically. Businesses will grow, there will be more investments, more job creation and higher growth by states.

The state's 24 per cent agricultural growth is being considered as a role model by the Centre and states. What efforts are being made to double farm income by 2022?

The government has already put in place a comprehensive strategy which aims at reducing production cost, increasing productivity and production, ensuring payment of due price of farm produce to farmers and revision in the crop pattern. The government is providing farm loans at zero per cent interest rate, and has substantially reduced production cost. The implementation of the soil health card scheme has stopped the excess use of fertilizers. The change in the cropping pattern has helped cover various risks, and in some instances, increase farm income. In addition to the Centre's e-mandi scheme, the Madhya Pradesh government has launched e-procurement. This has opened up avenues for farmers to get more income.

The government is also promoting horticulture, greenhouse and polyhouse cultivation, while increasing spending on irrigation. These measures will help make farming more profitable.

How you have handled cow vigilante' violence?

Our vision is clear, and our intention good. We will not spare those who take law into their own hands. The law and order situation is good in the state. There has been no instances of communal tension. Besides, the state is investment-friendly.