GST shortfall: Gujarat borrows Rs 16,700 cr in 6 months

The revenue shortfall has continued to remain grave, despite industries starting to function after the Covid-19 lockdown was lifted in phases. (Representational)

With zero compensation received from the Goods and Services Tax (GST) since March when the lockdown was announced, the Gujarat government has borrowed Rs 16,700 crore in the first six months of the current fiscal year of 2020-’21. The monthly revenues of the state are still down by 25 percent and have forced the state government to resort to Open Market Borrowings.

“We follow a borrowing calendar and every month, we are experiencing a revenue shortfall of 20-25 percent….