New Delhi, Oct 14 (UNI) The Department of Expenditure, Ministry of Finance on Wednesday granted permission to Tamil Nadu to raise an additional amount of Rs 9,627 crore through open market borrowings.
The permission was issued, after the state formally communicated its acceptance for Option-1 to meet the shortfall arising out of GST implementation, the Ministry of Finance said in a statement here.
Total 21 states and two Union Territories, including Delhi and Jammu & Kashmir, have so far requested Option-1.
Yesterday, the Department of Expenditure had issued permission to 20 States to raise an additional amount of Rs 68,825 crore through open market borrowings. With today’s permission, 21 States have been granted permission to mobilize Rs 78,542 crore so far.
The borrowing permission issued to the 21 States is over and above the borrowing permission of around Rs 1.10 lakh crore to be issued to enable the States to meet the revenue shortfall arising out of GST implementation. A special window is being created by the Ministry of Finance to facilitate this borrowing.
The current additional borrowing permission has been granted @ 0.50 per cent of the Gross State Domestic Product (GSDP) to those States who have opted for Option-1 out of the two options suggested by the Ministry of Finance.
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 GSDP out of the two per cent additional borrowings permitted by the Government of India, under Atmanirbhar Abhiyaan on May 17.
This is over and above the Special Window of Rs 1.1 lakh crore.
The 20 states, who were granted permission on Monday, include Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura, Uttar Pradesh and Uttarakhand.
