Finance Secretary Ajay Bhushan Pandey gave an interview to the media where he informed that the government has been requesting the opposition ruled states to opt for the ‘GST revenue shortfall plan’ proposed by the central government.
The shortfall in revenue amounts to ₹1.83 lakh crores.
The government has proposed the plan to borrow ₹1.1 lakh crores from the market but the opposition governments want the center to borrow the revenue shortfall amount i.e. ₹1.83 lakh crores directly from the market.
On the issue, the finance secretary said that a reasonable amount of money should be borrowed from the market.
The amount will be repaid to the government through GST compensation CESS. So far 21 states and 3 Union Territories have opted for the borrowing plan.
The states like Kerala, Punjab, West Bengal, Rajasthan, Chhattisgarh, Jharkhand are yet to opt for the proposed borrowing plan.
Photo Credits: moneycontrol