Most BJP-Ruled States Opt For Rs 97,000-Crore Borrowing Plan To Meet GST Shortfall

Most Bharatiya Janata Party-ruled states have opted to borrow Rs 97,000 crore from the Reserve Bank of India via a special window to finance a shortfall in compensation cess for the current financial year, according to a government official.

An Andhra Pradesh government official, however, clarified that they want the central government or the GST Council to borrow and compensate states in full. But if there is no other option left, the state will choose the first plan, the official told BloombergQuint. Another official from Odisha said the state chose option 1 based on the political executive’s decision.

Only Manipur opted for option 2 that involves borrowing the entire Rs 2.35 lakh crore from the market, the first official quoted above said.

Goa, Assam, Arunachal Pradesh, Nagaland, Mizoram and Himachal Pradesh will list their preferences in a few days, he said, adding few states have submitted their views to Sitharaman, also the chairperson of the GST Council, and are yet to decide on the options.