Telangana Decides to Go for Option-1 to Meet the GST Implementation
Shortfall
·
State will get Rs.2,380 crore through Special Borrowing Window and
also Permission to Raise Additional Rs.5,017 crore through Borrowings
The Government of Telangana has communicated its
acceptance for Option-1 out of the two options suggested by the Ministry of Finance
to meet the shortfall in revenue arising out of GST implementation on 17
November 2020. The State has now joined 22
other States and 3 Union Territories (Delhi, Jammu & Kashmir and Puducherry)
who have opted for Option-1.
The States 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 now and the Government of India already borrowed
an amount of Rs.18,000 crore on behalf of the States in three instalments and has
passed it on to 22 States and 3 Union Territories on 23rd October, 2020,
2nd November, 2020 and 9th November, 2020. Now the Government of Telangana will receive funds
raised through this window. The next instalment
of borrowings is likely to be released on 23rdNovember, 2020.
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, 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 AtmnirbharAbhiyaan on 17th May, 2020. This is over
and above the Special Window of Rs.1.1 lakh crores. On receipt of the choice of
Option-1from the Government of Telangana, the Government of India has today granted
the State Government of Telangana additional borrowing permission of Rs.5,017 crore
(0.5% of Telangana’s GSDP).
States who have opted for Option-1 are – Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat,
Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya,
Mizoram, Nagaland, Odisha, Rajasthan, Sikkim, Telangana, Tripura, Tamil Nadu, Uttar
Pradesh, and Uttarakhand, along with the three Union Territories
of Delhi, Jammu & Kashmir and Puducherry. The amount of additional borrowing
permission granted to these States and the amount of funds raised through special
window and released to the 22 States and 3 UTs 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 till 17.11.2020
|
(Rs. in Crore) |
|||
|
S. No. |
Name of State / UT |
Additional borrowing of 0.50 percent allowed to States |
Amount of fund raised thrugh special
window passed on to the States/ UTs |
|
1 |
Andhra Pradesh |
5051 |
512.96 |
|
2 |
Arunachal Pradesh* |
143 |
0.00 |
|
3 |
Assam |
1869 |
220.87 |
|
4 |
Bihar |
3231 |
866.51 |
|
5 |
Goa |
446 |
186.36 |
|
6 |
Gujarat |
8704 |
2046.80 |
|
7 |
Haryana |
4293 |
966.04 |
|
8 |
Himachal Pradesh |
877 |
381.13 |
|
9 |
Karnataka |
9018 |
2754.08 |
|
10 |
Madhya Pradesh |
4746 |
1008.21 |
|
11 |
Maharashtra |
15394 |
2658.85 |
|
12 |
Manipur* |
151 |
0.00 |
|
13 |
Meghalaya |
194 |
24.77 |
|
14 |
Mizoram* |
132 |
0.00 |
|
15 |
Nagaland* |
157 |
0.00 |
|
16 |
Odisha |
2858 |
848.39 |
|
17 |
Rajasthan |
5462 |
327.01 |
|
18 |
Sikkim* |
156 |
0.00 |
|
19 |
Tamil Nadu |
9627 |
1385.52 |
|
20 |
Telangana# |
5017 |
0.00 |
|
21 |
Tripura |
297 |
50.43 |
|
22 |
Uttar Pradesh |
9703 |
1333.32 |
|
23 |
Uttarakhand |
1405 |
514.28 |
|
|
Total: |
88931 |
16085.53 |
|
1 |
Delhi |
0.00 |
1301.77 |
|
2 |
Jammu & Kashmir |
0.00 |
504.26 |
|
3 |
Puducherry |
0.00 |
108.44 |
|
|
Total: |
0.00 |
1914.47 |
|
|
Grand Total |
88931 |
18000.00 |
* These States have ‘NIL’ GST compensation gap
# Funds will be released starting from next round of borrowing.