New Delhi: With Chhattisgarh communicating its acceptance of Option-1 to meet the revenue shortfall arising out of GST implementation, all the states including Odisha and barring Jharkhand have joined the Centre’s suggested formula on compensation settlement.
With this, the number of states who have favoured Option-1 has gone up to 27.
All states including Odisha, except Jharkhand and all the 3 union territories with Legislative Assembly have decided in favour of Option-1.
The states & union territories who choose Option-1 are getting the amount of shortfall arising out of GST implementation through a special borrowing window put in place by the Government of India.
The window has been operationalised since October 23, 2020 and the government has already borrowed an amount of Rs 30,000 crore on behalf of the states in five instalments and passed it on to the states and union territories, who chose Option-1.
The funds borrowed through the special window were released to the states and…