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.
Did you know that India is one of the most linguistically diverse countries in the…
Recently unveiled The top 10 youngest billionaires 2026 list highlights the new generation of wealth…
The number of self-made women billionaires worldwide has reached a record 150 in 2026. This…
India and Vietnam have strengthened the cooperation in tribal and ethnic development. This coming after…
Did you know that salt is one of the most essential minerals used by humans…
The World Anti-Doping Agency (WADA) has postponed its decision on to a proposed rule that…