Finance ministry rolls out 6000 crore breather for states to address GST shortfall
In a major relief to the states struggling to meet GST revenue shortfall, the central government released Rs 6000 crore revenue as the first tranche. The amount has been transferred to sixteen states and two union territories which include Assam, Bihar, Goa, Haryana, Karnataka, Gujarat, Tripura, Delhi, Jammu and Kashmir, Himachal Pradesh, Andhra Pradesh, Uttarakhand, Madhya Pradesh, Meghalaya, Odisha, Tamil Nadu, Maharashtra, and Uttar Pradesh. Twenty-one states and two union territories have opted for this special window evolved by the government for borrowing at an interest rate of 5.19 percent. The borrowing is coordinated by Finance Ministry. While the government aims to make weekly releases of Rs 6000 crore to the states, the borrowing tenor is expected to be broadly 3 to 5 years.
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