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To borrow Rs 1.10 lakh crore Centre,on behalf of states to meet GST shortfall

According to market sources, since different states had different rates to cover the GST compensation deficit, they called the center to adjust them at the same rate.


New Delhi: The Ministry of Finance said on Thursday that the Union government will receive 1.10,000 rupee harvests from states to fill the deficit in the collection of goods and services taxes. The state budget has been disrupted since the last fiscal year as a result of the economic downturn and the reduction in the collection of Goods and Services Tax (GST), which has resulted in the waiver of the right to impose local taxes such as the tax on sales or value added tax when you introduce the Goods and Services Tax. July 2017. To counter the deficit, a market takeover is proposed.

In a statement, the Federal Ministry of Finance said a special window has been offered to states to borrow 1.10 lakh crore above and beyond their current borders to meet the deficit. " the government of India will deliver an estimated deficit of Rs. 1.10 lakh crore (including all states) at the right end," the statement said.

It added that "the amount borrowed will be given to states as consecutive loans instead of GST compensation".

A senior finance ministry official said the Indian government’s decision to take out a loan would ensure consistency in yield and separation between bond auctions. However, principal and interest will be paid by the compensation group. The official added that Crore Rs.1.10 would be collected through the issuance of bonds for three to four years.

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