Raipur: Under a special borrowing scheme, the Center has so far borrowed Rs.30,000 crore for the states in five installments, starting from October 23, to help the states to bridge the revenue gap of the current Fiscal Year, which has widened since the rollout of Goods and Services Tax implemented three years back.
The Centre borrows for the state at an attractive percentage of interest and passes on the amount to the states. The amounts get reflected in the budgets of the states.
According to the Ministry of Finance, Chhattisgarh will get Rs.3,109 crore under the borrowing scheme. “Now the state of Chhattisgarh will also receive funds raised through this window starting from the next round of borrowing” – stated the finance ministry.
With this, almost all the states (apart from Jharkhand and three UTs with legislature) have opted to join the borrowing window in order to bridge the revenue gap caused by the GST implementation. This puts an end to the controversy over GST compensation for the present time.
Centre has also granted the state of Chhattisgarh an additional borrowing permission of Rs.1,792 crore, representing 0.50% of its gross state domestic product (GSDP).