Chhattisgarh has joined the list of states which have given up dissenting against the Centre and opted for the Rs 1.1 lakh crore borrowing option extended by the Union government to address the shortfall in GST collection, reports the Economic Times.
As a result, the State government will be receiving Rs 3,109 crore through a special borrowing window. It will also be receiving permission to raise an additional sum of Rs 1,792 crore through borrowings (0.5 per cent of the State's GSDP).
With this, all of the States except Jharkhand and three Union Territories (UTs) have chosen to opt for Centre's offer after which the latter had started issuing the funds through back-to-back loans in weekly tranches through a special window coordinated by the Ministry of Finance.
As of yet, the MoF has already borrowed Rs 30,000 crore on behalf of the States in five tranches and passed it on. In addition to this, the amount of additional borrowing permission granted to 27 states stands at Rs 1,05,065 crore.
The development gains significance as the resolution shall help address the revenue gaps for the State governments at a time when the economy has begun to show signs of recovery from the COVID-19 created havoc.
Comments ↓
An Appeal...
Dear Reader,
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.