All the 28 states and three Union Territories (UT) with legislature have decided to go for Option-1 to meet the revenue shortfall arising out of the Goods and Services Tax (GST) implementation, stated an official statement by the Ministry of Finance.
Jharkhand, the only remaining state, has now communicated its acceptance of Option-1, it said. The Central government has set up a special borrowing window for the states and the UTs who choose Option-1 to borrow the amount of shortfall arising out of GST implementation.
“The window has been operationalised since 23rd October 2020 and the Government of India has already borrowed an amount of Rs 30,000 crores on behalf of the States in five instalments and passed it on to the States and Union Territories, who chose Option-1,” read the release.
Now, the Jharkhand government will also receive funds raised through this window starting from the next round of borrowing. The next instalment of Rs 6,000 crore will be released…