West Bengal Opts For Centre’s Rs 1.1 Lakh Crore Borrowing Option To End Impasse Over GST Compensation

West Bengal Opts For Centre’s Rs 1.1 Lakh Crore Borrowing Option To End Impasse Over GST CompensationWest Bengal Chief Minister Mamata Banerjee.

West Bengal 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 shortfall in GST compensation, reports Economic Times.

West Bengal's Finance Minister Dr Amit Mitra has written to union Finance Minister Nirmala Sitharaman on Friday (14 November) about state's decision to opt for the borrowing option due to "acute financial stress" on it.

"Considering the acute financial stress on the state’s finances due to the Covid 19 pandemic and the Amphan cyclone, West Bengal is willing to go along with your new proposal," Mitra was quoted as saying in the letter.

Meanwhile, the state has also asked the Centre to borrow the remaining sum of Rs 72,000 crore by January 2021.

It should be noted that while the opposition ruled Rajasthan, Jharkhand and Puducherry have already chosen the aforementioned borrowing option, Chhattisgarh and Punjab are still to decide if they support the proposal or not.

Majority of States and two 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.