Former Reserve Bank of India (RBI) Governor Y V Reddy said Wednesday that the Union government would gain more from GST than the states in the longer run.

During an interaction with students at the Indian Institute of Management-Ahmedabad, Reddy also opined that "trust deficit" has increased with regard to the administration of the Goods and Services Tax.

Reddy, who has also served as chairman of the fourteenth finance commission, was here to launch his book "Indian Fiscal Federalism", co-authored by G R Reddy.

"My sense about the GST is that centre will gain more than the states," said Reddy to a question by Gujarat chief secretary J N Singh, one of the invitees at the book launch.

"The way GST has been implemented, it does not command the trust of the states...The trust deficit has increased in regard to the administration of the GST," said Reddy.

On relevance and importance of the finance commission, Reddy said the problem is outside the commission. "Everyone is trying to find problems in finance commission. But the problem is not with the commission. Problem is outside the commission....allow the commission to do its work," he said.

First Published:Apr 4, 2019 6:01 AM IST