New Delhi: The Government has evolved a “special borrowing window” to address the shortfall in the Goods and Services Tax (GST) collection during the year 2020 – 2021. The finance ministry said already 21 States and 2 Union Territories have opted for this special window involving back-to-back borrowing coordinated by the ministry.
Out of these, five States did not have any shortfall on account of GST compensation. Today, the Central Government borrowed and transferred Rs.6,000 crores as first tranche to 16 States namely Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand and two Union Territories: UT of Delhi and UT of Jammu and Kashmir.
The borrowing is at an interest rate of 5.19 percent. It is intended to make weekly releases of Rs.6,000 crore to the States.Tenor of borrowing is expected to be broadly in the range of 3 to 5 years, the ministry informed.
– globalbihari bureau