Tribune News Service
New Delhi, November 28
The Punjab Government has communicated acceptance of ‘Option-1’ to meet the revenue shortfall arising out of GST implementation.
The number of states who have chosen this option has gone up to 26. All the three Union Territories with Legislative Assembly (Delhi, Jammu & Kashmir and Puducherry) have also decided in favour of ‘Option-1’, read an official news release.
The states and UTs who 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 window has been operationalised since October 23 and the Central Government has already borrowed Rs 24,000 crore on behalf of the states in four instalments and passed it on to the states and UTs, who chose ‘Option-1’.
Now Punjab will also receive funds raised through this window starting from the next round of borrowing.
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, the states are also entitled to get unconditional permission to borrow the final instalment of 0.50 per cent of Gross State Domestic Product (GSDP) out of the 2 per cent additional borrowings permitted by the Centre under the Atmanirbhar Abhiyaan.
This is over and above the special window of Rs 1.1 lakh crore. On receipt of the choice of ‘Option-1’ from Punjab, the Centre has granted additional borrowing permission of Rs 3,033 crore to the Punjab Government (0.5 % of the state’s GSDP).