Tribune News Service
New Delhi, November 28
After months of resistance, the Punjab Government has accepted the Centre’s borrowing proposal (Option-1) to meet revenue shortfall arising out of GST implementation. The move will give the cash-strapped state access to over Rs 11,000 crore funds.
Besides getting nod to borrow Rs 3,033 crore, Punjab will get Rs 8,359 crore through the special borrowing window.
Earlier this week, two other Opposition-ruled states — Kerala and West Bengal — communicated their acceptance of Option-1 to the Centre, leaving Punjab with no option but to follow suit.
The number of states which have chosen this option has now gone up to 26. All three UT legislative assemblies (Delhi, J&K and Puducherry) have also decided to go for Option-1.
They will get the amount of shortfall arising out of GST implementation through a special borrowing window put in place by the Centre.
The window has been operational since October 23 and the Centre has already borrowed Rs 24,000 crore on behalf of the states in four instalments and passed it on to the states and UTs, which chose Option-1.
Joins 25 states
- Following acceptance of Option-1, Punjab has got Centre’s nod to raise additional borrowing of Rs 3,033 crore (0.5 per cent of GSDP)
- It will also get Rs 8,359 crore through special borrowing window to meet GST implementation shortfall
- As many as 25 states and three UTs have already chosen this option