The central government will borrow Rs 1.1 lakh crore under the special window to meet the shortfall of Goods and Services Tax (GST) compensation. Under the Special Window, the estimated shortfall of Rs 1.1 lakh cr (assuming all States join) will be borrowed by Government of India in appropriate tranches. The borrowed amount will be passed on to the States as a back-to-back loan in lieu of GST Compensation. This will not have any impact on the fiscal deficit of the Government of India.
WARRIOR 3.0 | Banking Awareness Batch for SBI, RRB, RBI and IBPS Exams | Bilingual | Live Class
The amounts will be reflected as the capital receipts of the State Governments and as part of the financing of its respective fiscal deficits. This will avoid differential rates of interest that individual States may be charged for their respective SDLs and will be an administratively easier arrangement. The govt also clarified that the General Government (States+Centre) borrowings will not increase by this step. The States that get the benefit from the Special Window is likely to borrow a considerably lesser amount from the additional borrowing facility of 2% of GSDP (from 3% to 5%) under the Aatma Nirbhar Package.
In a significant move aimed at reorganizing governance and addressing political and administrative challenges, President…
Exams such as SSC, Banking, Railways, and state-level tests offer paths to prestigious positions in…
Mysore, a city in the southern state of Karnataka, India, is famous for its rich…
The upcoming Champions Trophy 2025 marks the ninth edition of the ICC Champions Trophy, featuring…
The 2025 ICC Champions Trophy is set to mark the ninth edition of this prestigious…
India's nuclear program focuses on using nuclear energy for peaceful purposes, like producing electricity and…