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Govt writes to states, suggests borrowing options to meet GST shortfall

States could borrow via a special window centre will facilitate through the RBI or they may raise debt from the market, says finance ministry

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Giving two options, she said states can borrow either Rs 97,000 crore -- the deficit arising out of GST implementation -- or the entire Rs 2.35 trillion. (Illustration: Ajay Mohanty)

Press Trust of India New Delhi

5 min read Last Updated : Aug 29 2020 | 6:23 PM IST

The central government on Saturday wrote to states suggesting options of borrowing money to make up for the Rs 2.35 trillion shortfall in GST revenues expected in the ongoing fiscal.

Two days after first suggesting to states to borrow money to make up for the shortfall at the GST Council meeting, the finance ministry wrote to state governments saying they could borrow either via a special window it will facilitate through the RBI or raise debt from the market.

While the Centre has reasoned its recommendations on premise that it is already saddled with a large borrowing requirement given the

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