In the present economic scenario, the loss of revenue from implementation of GST could affect both the States and the Centre, stated the memorandum. "The States also get other transfers of funds from the Centre, both as devolution based on Finance Commission recommendations and as the Central share of funds for Centrally Sponsored Schemes. Even within the GST framework, the quantum of funds required for compensating the States, could be much higher than what was originally contemplated. In this context, the Government of Tamil Nadu would like to strongly emphasize that under the Constitutional framework of fiscal federalism, there is a necessity for the Centre to ensure that other transfers of resources from the Centre to the States are not affected while compensating the States for GST implementation,"it said.