Business Insight | Why some states are opposing Centre's proposal of borrowing to meet GST compensation shortfall? 

The Centre had granted permission to 20 states to raise an additional Rs 68,825 crore through open market borrowings (OMB). Now, Tamil Nadu has joined the bandwagon to become the 21st state. Delhi and Jammu & Kashmir also chose the route, which allows Rs 78,542 crore of extra OMB for states and Union Territories.

However, some states are likely to approach the Supreme Court on the Goods & Services Tax (GST) compensation issue, Kerala Finance Minister Thomas Isaac said in a tweet on October 15.

What is the compensation issue all about and why are some states opposing the Centre's proposal of borrowing to meet this shortfall? Let's find out in this edition of Business Insight.