Rajasthan to borrow Rs.97000 cr to meet GST implementation shortfall

Finance Ministry has said that Rajasthan government has decided to go for Option -1 to meet the GST implementation shortfall. In the 41st meeting of the GST Council in August, Centre had given two borrowing options to States to meet GST compensation requirement for the current financial year. States can borrow either 97 thousand crore rupees from a special window facilitated by the RBI or two lakh 35 thousand crore rupees from market. 

The Ministry said, 21 other States and three Union Territories - Delhi, Jammu and Kashmir and Puducherry have opted for Option-1.

  

Ministry said, the States 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 Central Government. The window has been operationalised now and the Government has already borrowed an amount of 12 thousand crore rupees on behalf of the States in two installments. It has passed the amount to 21 States and 3 Union Territories on 23rd October and 2nd November. The Ministry said, now the Government of Rajasthan will receive funds raised through this window.  

The next installment of borrowings is likely to be released on 9th November.