Chief Minister Bhupesh Baghel-led Chhattisgarh government has become the latest state to opt for the special window created by the Centre to compensate for the shortfall in the goods and services tax (GST) collections.
With this, 27 states and 3 Union territories have accepted the Centre’s borrowing plan, leaving only Jharkhand.
Chhattisgarh has accepted option-1 to meet the revenue shortfall arising out of GST implementation. The state has now received the permission to borrow additional Rs 1,792 crore from markets, which constitutes 0.5 per cent of its gross state domestic product (SGDP).
GST collections cross Rs 1 lakh crore mark for second month in a row
The state will now also get Rs 3,109 crore through a special borrowing window put in place by the Centre to meet the GST implementation shortfall.
The special window has been operational since October 23 and till now the Union government has borrowed Rs 30,000 crore on behalf of states. The money has been borrowed in five instalments and has been passed on to the states and UTs.
On October 23, November 9, November 23, and December 1, the borrowed funds through the special window were released to the states and UTs.
The Union Ministry had offered a special window of Rs 1.1 trillion to meet the GST Compensation gap and allowed the states to borrow up to 0.5 percent of their respective economic size from markets.
Meanwhile, the Centre estimated the total GST shortfall this year at Rs 2.35 trillion, out of which Rs 1.1 trillion was due to GST implementation, while the remaining was due to the slowdown in the wake of the COVID-19 pandemic.
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