deputy-cm-devda-faces-tough-questions-in-cabinet:ministers-vijaywargiya-and-prahlad-patel-raise-concerns-over-poor-economic-condition-and-declining-gst-collection

Madhya Pradesh Deputy Chief Minister and Finance Commercial Tax Minister Jagdish Devda came under intense scrutiny from senior colleagues in Tuesday’s cabinet meeting over Madhya Pradesh’s deteriorating economic situation and falling GST collections. Chief Minister Mohan Yadav expressed concern over the low revenue recovery and urged a focused discussion to address the issue. Senior ministers Kailash Vijayvargiya and Prahlad Patel raised pointed questions during the meeting regarding the state’s financial performance, particularly the decline in GST collection. Observing the tension in the room, CM Yadav intervened, stating that a separate review would be conducted to examine the matter in detail. Vijayvargiya raises concerns over GST decline During discussions on the finance department’s supplementary budget and other proposals, Minister Kailash Vijayvargiya pointed out that while GST collection is rising nationally, Madhya Pradesh is witnessing a drop. “We are not opposing the government, but why is GST declining here?” he asked. Vijayvargiya further urged the finance department to clarify the reasons behind the shortfall and outline concrete measures to rectify the situation. Deputy CM Devda responded that the implementation of a new system had temporarily affected the collection data, and some figures were yet to be updated. Vijayvargiya countered, saying the issue was administrative, not technical, and stressed that revenue leakages must be stopped. Devda suggested that the matter could be discussed separately, but Vijayvargiya stressed that it is not an individual issue but a systemic concern requiring urgent attention. Prahlad Patel supports review before budget Panchayat Minister Prahlad Patel supported Vijayvargiya’s observations, noting that district-level reports indicate weak field-level recovery. Patel stressed the importance of reviewing collections before finalizing the state budget. “Departments responsible for revenue should first have their ministers review performance before the budget,” he remarked. Chief Minister Yadav noted that ministers had already been briefed previously but advised that Devda handle the matter separately with his team. Financial figures highlight GST growth, but not sufficient Additional Chief Secretary (Finance) Manish Rastogi clarified that GST collection had actually increased compared to last year, rising from Rs 61,000 crore to Rs 63,000 crore despite lower GST rates. This represented a growth of around 6–6.5%, below the expected 10% growth. CM Yadav stressed that cabinet discussions should remain focused on agenda items and avoid unnecessary digressions. Deputy CM holds post-cabinet meeting with officers Following the cabinet session, Deputy CM Devda convened a departmental meeting in his office with key finance officers, including ACS Manish Rastogi. He directed officials to prioritize measures to accelerate revenue collection. The meeting focused on evaluating the state’s economic condition, addressing budget-related issues, reviewing revenue growth, monitoring progress of various schemes, and identifying strategies to set future priorities effectively. Devda urged officials to develop actionable plans to improve GST collection and strengthen the state’s overall financial position.