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.
Haryana is a state in northern India known for its rich history and industrial growth.…
The NITI Aayog has recommended adding coking coal to India's critical minerals list, emphasizing its…
UK Prime Minister Keir Starmer announced the resumption of Free Trade Agreement (FTA) negotiations with…
COP29 marked a significant milestone in global efforts to address climate change within the tourism…
Bali is home to a rich cultural heritage that blends Hindu philosophy, local animist traditions,…
India's states are known for their unique identities based on culture, geography, or contributions to…