U.T. opts for open market borrowing

The Union Territory of Puducherry has opted for the Centre’s proposal of borrowing from the open market to tide over the GST revenue shortfall during the current financial year.

The GST council had put forth options before the States and Union Territories, allowing them to borrow the compensation deficit due to transition to GST regime, coupled with the revenue shortfall due to the economic slowdown triggered by COVID-19. The States and U.T.s were also given the option of borrowing the compensation amount for GST implementation alone, an official said. Accepting the proposal, the CM, however, said it would have been better had the Centre borrowed the money and passed it on to the U.T.