Tamil Nadu, 20 more states to borrow Rs 78,452 cr to meet revenue shortfall

The decision comes days after the GST Council failed to reach a consensus on the stalemate over the Centre's proposal of states borrowing against future GST collections to make up for the shortfall.

A day after granting permission to 20 states for mobilising Rs 68,825 crore, the government on Wednesday allowed Tamil Nadu to raise an additional Rs 9,627 crore through open market borrowings to bridge the revenue shortfall caused by the COVID-19 pandemic.

These 21 states will cumulatively borrow an additional amount of Rs 78,452 crore.

"The permission was issued after the State (Tamil Nadu) formally communicated its acceptance for Option-1 to meet the shortfall arising out of GST implementation. 21 States and 2 Union Territories, Delhi and Jammu & Kashmir, have so far requested Option-1," an official statement said.

The borrowing