Kerala may advance market borrowings to offset GST transition impact

State is slated to borrow Rs 6,000 cr in July-Sept period; Rs 5,000 cr to be raised in August itself

The Kerala government may advance market borrowing through state development loans (bonds) to offset any transitory impact on resources due to the goods and services tax (GST).

According to the existing understanding with the central government, compensation will be given on a monthly basis.

Although the state has no issues with this arrangement, it will make raise the issue of front loading of loans (SDF) before the GST Council, Kerala State Finance Minister T T Thomas Isaac told Business Standard.

According to the indicative calendar of market borrowings maintained by the state governments, Kerala is slated to borrow Rs