Rajasthan picks Option 1 to meet GST shortfall

Why is it in news?
  • The Rajasthan government has decided to opt for the borrowing under the RBI-facilitated special window.
Details:
  • The move will help Rajasthan to meet its compensation shortfall under Goods and Services Tax (GST) regime.
  • Rajasthan will get Rs 4,604 crore via the special window.
  • The funds through the back-to-back loan will be made available to the state soon.
Background:
  • In August, the Centre gave two options to states:
(1) Borrow Rs 97,000 crore from a special window facilitated by RBI.
(2) Borrow Rs 2.35 lakh crore from the market.
  • The options have since been revised to Rs 1.10 lakh crore and Rs 1.8 lakh crore, respectively.
Posted by Jawwad Kazi on 6th Nov 2020
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