NEW DELHI: Kerala and West Bengal have accepted the Center loan proposal and you will get Rs 10.197 crore through the special window to meet GST income deficit.
These are among the states that had opposed the borrowing plan.
“The governments of Kerala and West Bengal have communicated their acceptance of Option 1 to address the revenue shortfall arising from the implementation of the GST. The number of states that have chosen this option has increased to 25.” the ministry of finance it said in a statement.
The 3 Union Territories with legislative assembly (Delhi, Jammu and Kashmir and Puducherry) have also spoken in favor of Option 1, he said.
The Center has already borrowed 24 billion rupees on behalf of the states in four installments and has passed them on to 23 states and 3 Union territories on October 23, November 2, November 9 and November 23. .
Now Kerala and West Bengal will receive funds raised through this from the next round of loans, the ministry added.
“Kerala and West Bengal will get Rs 10,197 crore through a special borrowing window to cover the GST implementation deficit,” the statement added.
Under the terms of Option-1, in addition to obtaining the facility of a special window for loans to cover the deficit arising from the implementation of the GST, states are also entitled to obtain unconditional permission to borrow the last installment of 0 ,fifty% State national product (GSDP) of 2% additional loans allowed by the Center under Aatmanirbhar Abhiyaan. This is above the special window of Rs 1.1 lakh crore.
Upon receipt of Option 1 from the Governments of Kerala and West Bengal, the Center has granted an additional loan permit of Rs 4,522 million to Kerala and Rs 6,787 million to West Bengal.
Other states that have opted for Option 1 are: Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Rajasthan, Sikkim, Tripura, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand, in addition to the Union Territories from Delhi, Jammu and Kashmir and Puducherry.
However, states such as Punjab, Chhattisgarh and Jharkhand have yet to opt for the loan scheme that says the Center should borrow the total deficit of Rs 1.83 million lakh. Kerala and West Bengal had also opposed the borrowing scheme.
Under the loan scheme (Option 1), the Center would borrow from the market 1.10 lakh crore rupees, which is the income shortfall due to the implementation of the GST.
The remaining deficit of Rs 73,000 crore is estimated to be the revenue impact of the Covid-19 pandemic.
The second option offered by the Center was for states to borrow the entire collection shortfall of Rs 1.83 million lakh.
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