Kerala and West Bengal Choose Option-1
to Meet the GST Implementation Shortfall - Get Rs. 10,197 crore through Special Borrowing Window
·
25 States and all Union Territories with Legislative Assembly have
favoured Option-I
·
Permission to Raise Additional Rs.11,309
crore through Borrowings also issued to Kerala and West Bengal.
Governments of Kerala and West Bengal have communicated
their acceptance of Option-1 to meet the revenue shortfall arising out of GST implementation
on 25 November 2020. The number of States
who have chosen this option has gone up to 25. All the 3 Union Territories with
Legislative Assembly (i.e. Delhi, Jammu & Kashmir and Puducherry) have also
decided in favour of Option-1.
The States & Union Territories who choose Option-1
are getting the amount of shortfall arising out of GST implementation through a
special borrowing window put in place by the Government of India. The window has
been operationalised since 23rd October, 2020
and the Government of India has already borrowed an amount of Rs.24,000 crore on
behalf of the States in four instalments and passed it on to the States and Union
Territories, who chose Option -1 on 23rd October, 2020, 2nd
November, 2020, 9th November, 2020 and 23rd November, 2020.
Now the State of Kerala and West Bengal will also receive funds raised through this
window starting from the next round of borrowings.
Under the terms of Option-1, besides getting the
facility of a special window for borrowings to meet the shortfall arising out of
GST implementation, the States are also entitled to get unconditional permission
to borrow the final instalment of 0.50% of Gross State Domestic Product (GSDP) out
of the 2% additional borrowings permitted by the Government of India, under Atmnirbhar Abhiyaan on 17th
May, 2020. This is over and above the Special Window of Rs.1.1 lakh crore. On receipt of the choice of Option-1 from the
Government of Kerala and West Bengal, the Government of India has granted additional
borrowing permission of Rs.4,522 crore to the State Government of Kerala (0.5% of
Kerala’s GSDP) and Rs.6,787 crore to the State Government of West Bengal (0.5% of
West Bengal’s GSDP) .
The amount of additional borrowing permission granted
to 25 States and the amount of funds raised through special window and released
to the 23 States and 3 Union Territories so far is annexed.
State wise additional borrowing of 0.50 percent
of GSDP allowed and amount of funds raised through special window passed on to the
States/UTs till 23.11.2020
|
(Rs. in Crore) |
|||
|
S.No. |
Name of State / UT |
Additional borrowing of 0.50 percent allowed to States |
Amount of fund raised through special window passed on to the
States/ UTs |
|
1 |
Andhra Pradesh |
5051 |
672.61 |
|
2 |
Arunachal Pradesh* |
143 |
0.00 |
|
3 |
Assam |
1869 |
289.54 |
|
4 |
Bihar |
3231 |
1136.27 |
|
5 |
Goa |
446 |
244.39 |
|
6 |
Gujarat |
8704 |
2683.88 |
|
7 |
Haryana |
4293 |
1266.68 |
|
8 |
Himachal Pradesh |
877 |
499.74 |
|
9 |
Karnataka |
9018 |
3611.17 |
|
10 |
Kerala # |
4,522 |
0.00 |
|
11 |
Madhya Pradesh |
4746 |
1321.98 |
|
12 |
Maharashtra |
15394 |
3486.24 |
|
13 |
Manipur* |
151 |
0.00 |
|
14 |
Meghalaya |
194 |
32.51 |
|
15 |
Mizoram* |
132 |
0.00 |
|
16 |
Nagaland* |
157 |
0.00 |
|
17 |
Odisha |
2858 |
1112.42 |
|
18 |
Rajasthan |
5462 |
645.06 |
|
19 |
Sikkim* |
156 |
0.00 |
|
20 |
Tamil Nadu |
9627 |
1816.66 |
|
21 |
Telangana |
5017 |
164.41 |
|
22 |
Tripura |
297 |
66.04 |
|
23 |
Uttar Pradesh |
9703 |
1748.29 |
|
24 |
Uttarakhand |
1405 |
674.27 |
|
25 |
West Bengal # |
6787 |
0.00 |
|
|
Total (A): |
100240 |
21472.16 |
|
1 |
Delhi |
Not applicable |
1706.93 |
|
2 |
Jammu & Kashmir |
Not applicable |
661.21 |
|
3 |
Puducherry |
Not applicable |
159.70 |
|
|
Total (B): |
Not applicable |
2527.84 |
|
|
Grand Total (A+B) |
100240 |
24000.00 |
* These States have ‘NIL’ GST compensation gap
# Funds will be released starting
from next round of borrowing.