All states chooses option given by central for GST compensation

All the states opposing the options given by the central government for GST compensation, one by one, finally decided to choose the first option. Except Jharkhand, all the states of the country have chosen the first option. According to the information received by the central government, Chhattisgarh has also decided to go with the first option.

Under this, Chhattisgarh will get Rs 3,109 crore under a special borerowing window. Apart from this, 0.50 percent of Chhattisgarh's GDP i.e. Rs 1,792 crore additional loan will also be made available to the state. Let us tell you that to compensate for the decline in GST collection in the current financial year 2020-21, the central government had put two options before the states.

The Central Government had given two options to the states with different terms to compensate for GST Compensation. The first option was of Rs 97,000 crore and the second option was of Rs 2.35 lakh crore. Later in the first option, the states' borrowing limit was raised to Rs 1.1 lakh crore. The Central Government has agreed to transfer this amount by borrowing itself to the states.