Rajasthan accepts loan option of the center to catch up on reduction in GST revenue
Congress-ruled Rajasthan has accepted the Centre’s loan proposal to catch up on the reduction in Goods and Services Tax (GST) revenue. After accepting this proposal, Rajasthan will get quite Rs 4,600 crore through a special window facility.
The Finance Ministry said during a statement on Thursday, “The Rajasthan government has reported to settle on the first-option to catch up on the reduction in revenue thanks to the implementation of GST.” The Finance Ministry gave the states two options for this. “With this Rajasthan will get Rs. 4,604 crore through a special loan facility.
“Aside from this, it’ll even be allowed to boost a further Rs 5,462 crore through debt. 21 states and three union territories before Rajasthan have accepted the proposal of the primary option given by the middle. 1 in revenue to the states by the middle Two options got to form up for the shortfall of Rs 83 lakh crore. Under the primary option, the middle will take a loan of Rs 1.10 lakh crore and provides it to the states to catch up on the possible reduction in revenue thanks to GST implementation. The remaining Rs 73,000 crore in revenue of the states is estimated to flow from the Covid-19 epidemic. States like Kerala, Punjab, West Bengal, Chhattisgarh haven’t yet accepted the Centre’s loan schemes.
These states say that the middle should take loans from the market to scale back the whole revenue of Rs 1.83 lakh crore. A special credit facility has been started for states that choose the primary option of revenue compensation. the govt of India has already taken a loan of Rs 12,000 crore from the states in two installments under this facility. This amount has been released to 21 states and three union territories on October 23 and All Souls’ Day, 2020. subsequent installment under this is often probably