Centre won't hit market to make up for GST compensation shortfall

To borrow Rs 5.03 trillion in Oct-March 2022

The Centre will be borrowing Rs 5.03 trillion from the market in the second half, unchanged from what it had planned, but including the goods and services tax (GST) compensation paid to states.

After its February Budget announcement of Rs 12.05 trillion of gross market borrowing, in May, the government had said it may have to borrow an additional Rs 1.58 trillion from the market to meet the GST compensation shortfall.  

However, going by the math given by the government, that extra amount will not be borrowed from the market. Instead, that could get adjusted from the government revenue without