Meghalaya along with other states will receive the next installment from the Centre’s special borrowing window tomorrow.
The Government of India has set up a special borrowing window for the states and union territories that choose Option-1 to borrow the amount of shortfall arising out of GST implementation.
For Meghalaya, the Centre has allowed additional borrowing of 0.50 percent amounting to Rs 194 crore. Till December 4, the amount of fund raised through special window which was released to Meghalaya was Rs 38.89 crore.
It may be noted that all 28 states and three union territories with legislature have decided to go for Option-1 to meet the revenue shortfall arising out of the GST implementation.
The special borrowing window for the states and union territories that choose Option-1 to borrow the amount of shortfall arising out of GST implementation has been operationalised since October 23 and the Government of India has already borrowed an amount of Rs.30,000 crore on behalf of the states in five installments and passed it on to these states and union territories.
The next installment of Rs.6,000 crore will be released to the states and union territories tomorrow.
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 installment of 0.50 per cent of Gross State Domestic Product (GSDP) out of the 2 per cent additional borrowings permitted by the Government of India, under Atma Nirbhar Abhiyaan on May 17, 2020. This is over and above the Special Window of Rs.1.1 lakh crore.