Chhatisgarh one of the opposition party ruled states has accepted the government’s GST shortfall plan thereby accepting ₹1.1 Lakh crores.
The state government will use the amount to meet the GST compensation shortfall.
Finance Ministry of India informed about the state’s decision on Thursday.
The Chhatisgarh government will get ₹3109 crores through a special borrowing window and will be permitted to raise an additional ₹1792 crores.
"On receipt of the choice of Option-1 from Chhattisgarh, the Government of India has granted additional borrowing permission of Rs.1792 crore, 0.5% of Chhattisgarh’s gross state domestic product (GSDP),"the finance ministry said.
The central government had asked the states and UTs to accept ₹1.1 lakh crore borrowing plan to meet the GST shortfall.