GST compensation shortfall: Centre to borrow Rs 1.1 trn on behalf of states

This may come as a victory of sorts for opposition-ruled states, including Punjab, West Bengal, and Chhattisgarh, which have insisted that the Centre should do the borrowing

In what appears to be a relief for the states, the Centre has said it will borrow up to Rs 1.1 trillion, which is the estimated revenue shortfall on account of implementing goods and services tax (GST), and lend the states under the special window. The extra fund raising  was reflected in the borrowing calendar released by the RBI and the finance ministry. As much as Rs 55,000 crore each would be borrowed  through securities of three-year and five-year tenors  As such, the borrowing will rise to Rs 4.88 trillion from October 19 to March 31 in the current financial