GST compensation shortfall: Tamil Nadu becomes 21st state to pick Option 1

Gets nod to borrow Rs 9,600 crore, total additional borrowing touches Rs 78,000 crore

Tamil Nadu became the 21st state to pick Option 1 to access additional market borrowing, of Rs 9,627 crore, on Wednesday taking the total borrowing permitted by the Centre to Rs 78,000 crore, over and above the Rs 1.1 trillion special window provided to all states to compensate for inadequate GST cess collection.

The additional borrowing for states constitutes 0.5 per cent of their respective gross state domestic product.

On Tuesday, the Department of Expenditure had permitted 20 states to raise an additional Rs 68,825 crore through the market. “With today’s permission, 21 states have been granted permission to mobilise