The borrowing permission issued to the 21 states is over and above the borrowing permission of around Rs 1.10 lakh crore to be issued to enable them to meet the revenue shortfall arising out of GST implementation. A special window is being created by the Ministry of Finance to facilitate this borrowing.
The current additional borrowing permission has been granted at the rate of 0.5 per cent of the gross state domestic product (GSDP) to those states who have opted for option one out of the two options suggested by the Ministry of Finance.
Under the terms of option one, besides getting the facility of a special window for borrowings to meet the shortfall arising out of GST implementation, states are also entitled to get unconditional permission to borrow the final instalment of 0.50 per cent of GSDP out of the 2 per cent additional borrowings permitted by the government under Aatmanirbhar Abhiyaan on May 17.
This is over and above the special window of Rs 1.1 lakh crore, said an official statement.
The 20 states who were granted permission yesterday were Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura, Uttar Pradesh and Uttarakhand.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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