Centre borrows Rs 6,000 cr to compensate GST to 18 domains in first tranche

16 states, two UTs among beneficiaries; money raised at 5.19% interest rate; Centre to transfer Rs 6,000 crore to states on a weekly basis through this window

The Centre on Friday borrowed Rs 6,000 crore and transferred to 16 states and two union territories as the first tranche of the GST compensation gap. The money was raised at an interest rate of 5.19 per cent. 

The union government intends to transfer the money to the tune of Rs 6,000 crore each to the states on a weekly basis through this window. The tenure is expected to be in the range of Rs 3-5 years. 

According to the data released by the Reserve Bank of India, the Centre on Friday raised Rs 12,000 crore through five year papers