Congress-ruled Punjab has accepted the Centre’s borrowing proposal and will get Rs 8,359 crore through the special window to meet GST revenue shortfall.
“Government of Punjab has communicated acceptance of option 1 to meet the revenue shortfall arising out of GST implementation. The number of states which have chosen this option has gone up to 26. All the 3 Union Territories with Legislative Assembly (i.e. Delhi, Jammu & Kashmir and Puducherry) have also decided in favour of option 1,” a Finance Ministry statement said.
The Centre has already borrowed Rs 24,000 crore on behalf of the states in four instalments and has passed it on to 23 states and three Union Territories on October 23, November 2, November 9 and November 23. From the next round of borrowings, Punjab, Kerala and West Bengal too would receive funds raised through this window.
Earlier this week, Kerala and West Bengal had communicated to the Centre about accepting the borrowing option to meet GST revenue shortfall. All opposition-ruled states had initially opposed joining the borrowing plan opposed by Centre.
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, states are also entitled to get unconditional permission to borrow the final instalment 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 ‘Aatmanirbhar Bharat’ mission. This is over and above the special window of Rs 1.1 lakh crore.
So, Punjab will get permission for additional borrowing of Rs 3,033 crore (0.5 per cent of its GSDP), the Ministry added.
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