New Delhi, December 3
Chhattisgarh has accepted the Centre’s borrowing proposal and will get Rs 3,109 crore through the special window to meet goods and services (GST) revenue shortfall.
With this, 27 states and three union territories have accepted the Centre’s borrowing plan, leaving only Jharkhand which is yet to decide.
“Government of Chhattisgarh has communicated its acceptance of option-1 to meet the revenue shortfall arising out of GST implementation. All states except Jharkhand and all the three union territories with Legislative Assembly have decided in favour of option-1,” read a Finance Ministry statement.
The states and union territories that choose option-1 are getting the amount of shortfall arising out of GST implementation through a special borrowing window put in place by the Government of India.
The Centre has already borrowed Rs 30,000 crore on behalf of the states in five installments and has passed it on to 26 states and three union territories on October 23, November 2, November 9, November 23 and December 1.
From the next round of borrowings, Chattisgarh too would receive funds raised through this window.
Under the terms of option-1, besides getting the facility of a special window for borrowings to meet the shortfall arising out of GST implementation, states are also entitled to get an unconditional permission to borrow the final installment of 0.50 per cent of gross state domestic product (GSDP) out of the 2 per cent additional borrowings permitted by the Government of India, under Aatmanirbhar Abhiyaan. This is over and above the special window of Rs 1.1 lakh crore.
On receipt of the choice of option-1 from the Government of Chattisgarh, the Government of India has granted additional borrowing permission of Rs 1,792 crore to the Government of Chattisgarh (0.5 per cent of Chattisgarh’s GSDP), the ministry added.
Separately, Chattisgarh will get Rs 3,109 crore through special borrowing window to meet the GST implementation shortfall.
States who have opted for option-1 are – Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tripura, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal, along with the three union territories of Delhi, Jammu and Kashmir and Puducherry.
Under the borrowing plan (option-1), the Centre would borrow from market Rs 1.10 lakh crore which is the revenue shortfall on account of GST implementation. The remaining Rs 73,000-crore shortfall is estimated to be the revenue impact of COVID-19 pandemic.
The second option given by the Centre was for the states to borrow the entire Rs 1.83 lakh crore collection shortfall. PTI