Chief Minister (CM) Amarinder Singh led Punjab has joined the list of dissenting states which have given up the fight and opted for the Rs 1.1 lakh crore borrowing option extended by the Centre to address the shortfall in GST compensation, Economic Times.
As a result, Punjab will be receiving Rs 8,359 crore through a special borrowing window. It will also be receiving permission to raise an additional sum of Rs 3,033 crore through borrowings (0.5 per cent of the State's GSDP).
Majority of States and Union Territories (UTs) had already 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 now, the tally stands at 26 States and three UTs.
As of yet, the MoF has already borrowed Rs 24,000 crore on behalf of the States in four instalments. In addition to this, the 26 States have been facilitated with the permission to borrow an additional sum to the tune of Rs 1,03,273 crore.
It should be noted that while the opposition ruled Kerala, West Bengal, Rajasthan, Jharkhand and Puducherry have already chosen the aforementioned borrowing option.
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.