GST compensation: 21 states may borrow Rs 78,000 cr above Rs 1.1 trn option

Tamil Nadu opts for special window, gets permission to borrow Rs 9,600 crore, Kerala reacts strongly to the Centre's move to 'divide" states

The Centre's permission to 21 states to borrow Rs 78,000 crore from the market is over and above the Rs 1.1 trillion special window given to all the states for GST compensation.  

“This is over and above the special window of Rs 1.1 trillion,” the Union finance ministry said on Wednesday.

This is bonus borrowing for states to the tune of 0.5 per cent of their respective gross state domestic product. This incentive was there in one of the two options given by the Centre to the states for paying their compensation shortfall due to the fall in comensation cess