GST Council meet: States to push for borrowing by Centre on Thursday

Our worst fears are now coming true, Amit Mitra writes to Sitharaman

Ahead of the crucial single-agenda GST Council meeting on Thursday, most states — including those governed by the BJP — reached a consensus that the Centre should borrow to compensate states for the revenue shortfall owing to inadequate cess collection. 

States have objected to borrowing from the market themselves, and will seek an extension to the compensation period beyond the promised FY22.

Sushil Kumar Modi, deputy chief minister of Bihar, told Business Standard that market borrowing appeared to be the only logical option, that too by the Centre. “It would be better if the Centre borrowed, because it would have to provide