Source – Jagran
The states and Union Territories have accepted the Centre’s first option to meet the revenue shortfall due to the Goods and Services Tax (GST) implementation, the government said on Saturday. As per the option given by the Centre, all the states and Union Territories (UTs) will get a special window for borrowing to meet the shortfall arisen following the implementation of the GST tax regime.
“This is over and above the special window of Rs.1.1 lakh crore. On receipt of the choice of Option-1, the Government of India has granted additional borrowing permission of Rs.1,765 crore to the State Government of Jharkhand (0.50 % of Jharkhand’s GSDP),” a finance ministry statement read.
The Jharkhand government will also receive funds raised through this window starting from the next round of borrowing. The next installment of Rs 6,000 crore will be released to the states/UTs on December 7.
According to the ministry, under the terms of Option-1, besides getting the facility of a special window for borrowings to meet the shortfall arising out of GST implementation, the states are also entitled to get unconditional permission to borrow the final installment of 0.50 per cent of Gross State Domestic Product (GSDP) out of the 2 per cent additional borrowings permitted by the Government of India, under Atma Nirbhar Abhiyaan on May 17, 2020.
This is over and above the Special Window of Rs 1.1 lakh crore. On receipt of the choice of Option-1, the Government of India has granted additional borrowing permission of Rs 1,765 crore to the state government of Jharkhand (0.50 per cent of Jharkhand’s GSDP).
Phtograph Credits : PTI