Bridge the gap

The Union government’s decision to borrow and on-lend to the states to cover the shortfall in goods and services tax (GST) collection should be welcomed. Contrary to its earlier position, the Centre will now borrow Rs 1.1 trillion and pass it on to the states. The debt will be repaid by extending the levy of cess beyond five years. In the given context, this is certainly a more efficient way of borrowing than forcing individual states to approach the market. This would also make things easier for the government’s debt manager (Reserve Bank of India), and the states would get