All states and territories in the Union have decided to opt for the first option offered by the Center to cover the revenue shortfall arising from the implementation of the Goods and Services Tax (GST) and Jharkhand becomes the latest state to join the list, the government said Saturday. .
Under the terms of Option-1, the states and territories of the Union will obtain the facility of a special window for loans to cover the deficit arising from the implementation of the GST and are entitled to obtain unconditional permission to borrow the last installment 0.50% of the National Gross State. Proceeds (GSDP) of the additional 2% loans allowed by the government under Aatmanirbhar Abhiyaan on May 17, 2020. “This is above the special window of Rs.1.1 lakh crore. Upon receiving the choice of Option 1, the Government of India has granted an additional loan permit of Rs 1,765 million to the Jharkhand State Government (0.50% of the Jharkhand GSDP), ”said the Finance Ministry in a statement.
The amount of additional loan permission granted to 28 states and the amount of funds raised through the special window and released to the states and territories of the Union so far is attached, according to the statement.
What is the special loan window?
The government has established a special indebtedness window for states and UTs that choose Option 1 to borrow the amount of the deficit arising from the implementation of the GST. The window has been operational since October 23, 2020, and the government has already borrowed an amount of Rs 30,000 crore on behalf of the states in five installments and passed it on to the states and UT, which chose Option 1.
Now, Jharkhand will also receive funds raised through this window from the next round of loans. The next installment of Rs 6,000 crore will be delivered to the states and territories of the Union on December 7, 2020.
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