Telangana opts for Option 1 to meet GST shortfall

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Telangana has now joined 22 other States and three Union Territories (Delhi, Jammu-Kashmir, and Puducherry) who have opted for the same option.

 

The Union Ministry of Finance informed that Telangana has opted for Option-1 suggested by the Ministry to meet the shortfall in revenue arising out of GST implementation.

According to the ministry, 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 (GoI).

As per the report, the state will get Rs 2,380 crores through a special borrowing window and also permission to raise additional Rs 5,017 crores through borrowings.

Telangana has now joined 22 other States and three Union Territories (Delhi, Jammu-Kashmir, and Puducherry) who have opted for the same option.

The window has been operationalised now and the GoI already borrowed an amount of Rs 18,000 crores on behalf of the states in three installments and has passed it on to 22 States and three Union Territories on October 23, November 2, and November 9, 2020.

Now, the Telangana government will also receive funds raised through this window.

"The next installment of borrowings is likely to be released on November 23, 2020," read a release by the Ministry of Finance.

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 have opted for Option-1.

 

With inputs from Agency

Image credit: Business Standard

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