New Delhi, Jan. 12 -- Revenue losses due to mid-year GST rate rationalisation, erosion of states' fiscal powers and demands for a more equitable Centre-state funding pattern under centrally sponsored schemes (CSS) dominated discussions at the pre-Budget meeting chaired by Union Finance Minister Nirmala Sitharaman.

States Flag GST-Linked Revenue Losses

Several states raised concerns over revenue losses following sweeping GST rate cuts that came into effect on September 22 last year. They said the cuts had shrunk their fiscal space, even though they supported the move as a pro-people measure, reported The Indian Express.

States also sought a share in collections from excise duty on tobacco and cess on pan masala, which replaced the GST c...