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Friday, January 22nd, 2021

Chhattisgarh will get Rs.3,109 crores through special borrowing window to meet the GST implementation shortfall

INVC NEWS
New Delhi,

Government of Chhattisgarh has communicated its acceptance of Option-1 to meet the revenue shortfall arising out of GST implementation. The number of States who have favoured Option-1 has gone up to 27. All States 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 23rd October, 2020 and the Government of India 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 UTs on 23rd October, 2020, 2nd November, 2020, 9th November, 2020, 23rd November, 2020 and 1st December, 2020. Now the State of Chhattisgarh will also receive funds raised through this window starting from the next round of borrowing.

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, the States are also entitled to get unconditional permission to borrow the final instalment of 0.50% of Gross State Domestic Product (GSDP) out of the 2% additional borrowings permitted by the Government of India, under AtmanirbharAbhiyaan on 17th May, 2020. This is over and above the Special Window of Rs.1.1 lakh crore. On receipt of the choice of Option-1, the Government of India has granted additional borrowing permission of Rs.1,792 crore to the State Government of Chhattisgarh (0.50 % of Chhattisgarh’s GSDP).

The amount of additional borrowing permission granted to 27 States and the amount of funds raised through special window and released to the States and Union Territories so far is annexed.

 

 

Statewise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTstill 02.12.2020

(Rs. in Crore)

S. No.

Name of State / UT

Additional borrowing of 0.50 percent allowed to States

Amount of fund raised through special window passed on to the States/ UTs

1

Andhra Pradesh

5051

804.15

2

Arunachal Pradesh*

143

0.00

3

Assam

1869

346.12

4

Bihar

3231

1358.54

5

Chhattisgarh #

1792

0.00

6

Goa

446

292.20

7

Gujarat 

8704

3208.80

8

Haryana

4293

1514.40

9

Himachal Pradesh 

877

597.47

10

Karnataka

9018

4317.39

11

Kerala

4,522

328.20

12

Madhya Pradesh

4746

1580.51

13

Maharashtra

15394

4167.99

14

Manipur*

151

0.00

15

Meghalaya

194

38.89

16

Mizoram*

132

0.00

17

Nagaland*

157

0.00

18

Odisha

2858

1329.97

19

Punjab

3033

475.80

20

Rajasthan

5462

907.12

21

Sikkim*

156

0.00

22

Tamil Nadu

9627

2171.90

23

Telangana

5017

299.88

24

Tripura

297

78.90

25

Uttar Pradesh

9703

2090.21

26

Uttarakhand

1405

806.10

27

West Bengal

6787

252.22

 

Total (A):

105065

26966.76

1

Delhi

Not applicable

2040.77

2

Jammu & Kashmir

Not applicable

790.53

3

Puducherry

Not applicable

201.94

 

Total (B):

Not applicable

3033.24

 

Grand Total (A+B)

105065

30000.00

* These States have ‘NIL’ GST compensation gap

Funds will be released starting after next round of borrowing.

 

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