NEW DELHI: Jharkhand has also agreed to accept the Center’s proposal on market loans to make up for the revenue shortfall due to GST implementation, drawing down the curtains of acrimony on the issue between the government and opposition-run states.
Several opposition-ruled states had argued in a special session of the GST Council that the Center should borrow the money from the market, as it would get a better rate, while the state loans would burden its debt service. and they would get a higher rate.
GST: Next delivery of 6k crore to be delivered to the states on December 7
The Center has established a special indebtedness window for the states and territories of the union that elect Option 1, which has been operational since October 23. The government has already borrowed Rs 30 billion in five installments and transferred them. Now, Jharkhand will also receive the funds raised through this window. The next delivery of 6 billion rupees will be delivered to the states and territories of the union on December 7.
Under the terms of Option 1, in addition to the facility of a special window, states are also entitled to obtain unconditional permission borrow the last 0.5% installment of the State’s gross domestic product from the additional 2% loans allowed by the Center under the Atmanirbhar Abhiyaan. Jharkhand has been granted an additional loan permit of Rs 1,765 million.
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