States' GST revenue shortfall can be bridged by monetising debt, NSSF: SBI

The Centre said a special window can be provided to the states, in consultation with the RBI, for borrowing at a reasonable interest rate

Economists at SBI on Friday proposed three options for states to raise resources to bridge the shortfall in GST revenue from the Centre.

This can be done by the Reserve Bank monetising the state governments' debts, enlargement of Ways and Means Advances (WMA), or taking recourse to the National Small Savings Fund, they said.

The Centre on Thursday had placed before the GST Council two options for borrowing by states to meet the shortfall in Goods and Services Tax (GST) revenues, pegged at Rs 2.35 trillion in the current fiscal.

The Centre said a special window can be provided to