He said once the Union government agreed to borrow on behalf of states, there was little to disagree with.
"Our chief minister will be writing to the central government in a day or two," clarified Deo.
He added that states would continue to ask the Centre to borrow the entire shortfall, instead of only Rs 1.1 trillion. He said states would raise this issue at the next GST Council meeting.
"We have been suggesting that the entire shortfall be borrowed by the Centre. With the collections now improving, the shortfall may shrink. Whatever the figure may be - be it Rs 1.5 trillion or Rs 1.9 trillion - it must be borrowed by the Centre," emphasised Deo.
The special window, totalling Rs 1.1 trillion, has been operationalised since October 23. The Union government has already borrowed Rs 24,000 crore on behalf of states in four instalments and passed it on to states and Union Territories that have opted for this window.
Besides this window, states are also entitled to get unconditional permission to borrow up to 0.5 per cent of their respective gross state domestic product. However, this permission is reserved for those already signed up.
Kerala has been given permission to borrow Rs 4,522 crore and West Bengal Rs 6,787 crore from the markets. Similar permission will be given to Punjab
and Chhattisgarh once they formally send in their assent in writing.
The Centre had estimated the total GST shortfall this year to be at Rs 2.35 trillion. Only Rs 1.1 trillion of this was due to GST, the rest due to Covid. It offered a special window of Rs 1.1 trillion. States were allowed to borrow 0.5 per cent of their respective economic size from the markets.