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New Delhi : Government of Chhattisgarh has communicated its acceptance of Option-1 to meet the revenue shortfall arising out of GST implementation. The number of States favouring Option-1 has gone up to 27. All States except Jharkhand and all the 3 Union Territories with Legislative Assembly have decided in favour of Option-1.
The States & Union Territories who choose Option-1 are getting the amount of shortfall arising out of GST implementation through a special borrowing window put in place by the Government of India. The window has been operationalised since October 23, 2020, and the Government of India has already borrowed an amount of Rs.30,000 crore on behalf of the States in five instalments and passed it on to the States and Union Territories, who chose Option-1.
The funds borrowed through the special window were released to the States and UTs on October 23, 2020, November 2, 2020, November 9, 2020, November 23, 2020, and December 1, 2020. Now the State of Chhattisgarh will also receive funds raised through this window starting from the next round of borrowing, according to a PIB release.
Under the terms of Option-1, besides getting the facility of a special window for borrowings to meet the shortfall arising out of GST implementation, the States are also entitled to get unconditional permission to borrow the final instalment of 0.50% of Gross State Domestic Product (GSDP) out of the 2% additional borrowings permitted by the Government of India under Atmanirbhar Abhiyaan on May 17, 2020. This is over and above the Special Window of Rs 1.1 lakh crore. On receipt of the choice of Option-1, the Government of India has granted additional borrowing permission of Rs 1,792 crore to the State Government of Chhattisgarh (0.50 % of Chhattisgarh’s GSDP).