Why has the GST compensation gap widened and what does it mean for consumers

States are once again expected to face a double whammy of a large shortfall in revenues from the goods and services tax (GST) and a widening compensation gap as the second wave of the COVID-19 pandemic disrupted economic activity and damaged consumer sentiment. This would necessarily mean that they will have to depend on borrowings for the second consecutive year to tide over the shortfall in GST…