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Home News Goods and Services Tax - GST Month 11 2020 2020 (11) This
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Telangana decides to go for Option-1 to meet the GST implementation shortfall

November 18, 2020
  • Contents

Telangana decides to go for Option-1 to meet the GST implementation shortfall

State will get ₹ 2,380 crore through special borrowing window and also permission to raise additional ₹ 5,017crore through borrowings

The Government of Telangana has communicated its acceptance for Option-1 out of the two options suggested by the Ministry of Finance to meet the shortfall in revenue arising out of GST implementation.  The State has now joined 22 other States and 3 Union Territories (Delhi, Jammu & Kashmir and Puducherry) who have opted for Option-1. 

The States who choose Option-1 are getting the amount of shortfall arising out of GST implementation through a special borrowing window put in place by the Government of India. The window has been operationalised now and the Government of India already borrowed an amount of ₹ 18,000 crore on behalf of the States in three instalments and has passed it on to 22 States and 3 Union Territories on 23rd October, 2020, 2nd November, 2020 and 9th November, 2020.  Now the Government of Telangana will receive funds raised through this window.  The next instalment of borrowings is likely to be released on 23rdNovember, 2020. 

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, States are also entitled to get unconditional permission to borrow the final instalment of 0.50% of Gross State Domestic Product (GSDP) out of the 2% additional borrowings permitted by the Government of India, under AtmnirbharAbhiyaan on 17th May, 2020. This is over and above the Special Window of ₹ 1.1 lakh crores. On receipt of the choice of Option-1from the Government of Telangana, the Government of India has today granted the State Government of Telangana additional borrowing permission of ₹ 5,017 crore (0.5% of Telangana’s GSDP).

States who have opted for Option-1 are – Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Rajasthan, Sikkim, Telangana, Tripura, Tamil Nadu, Uttar Pradesh, and Uttarakhand, along with the three Union Territories of Delhi, Jammu & Kashmir and Puducherry. The amount of additional borrowing permission granted to these States and the amount of funds raised through special window and released to the 22 States and 3 UTs so far is annexed.

State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States till 17.11.2020

(Rs. in Crore)

 

S. No.

Name of State / UT

Additional borrowing of 0.50 percent allowed to States

Amount of fund raised thrugh special window passed on to the States/ UTs

1

Andhra Pradesh

5051

512.96

2

Arunachal Pradesh*

143

0.00

3

Assam

1869

220.87

4

Bihar

3231

866.51

5

Goa

446

186.36

6

Gujarat

8704

2046.80

7

Haryana

4293

966.04

8

Himachal Pradesh

877

381.13

9

Karnataka

9018

2754.08

10

Madhya Pradesh

4746

1008.21

11

Maharashtra

15394

2658.85

12

Manipur*

151

0.00

13

Meghalaya

194

24.77

14

Mizoram*

132

0.00

15

Nagaland*

157

0.00

16

Odisha

2858

848.39

17

Rajasthan

5462

327.01

18

Sikkim*

156

0.00

19

Tamil Nadu

9627

1385.52

20

Telangana#

5017

0.00

21

Tripura

297

50.43

22

Uttar Pradesh

9703

1333.32

23

Uttarakhand

1405

514.28

 

Total:

88931

16085.53

1

Delhi

0.00

1301.77

2

Jammu & Kashmir

0.00

504.26

3

Puducherry

0.00

108.44

 

Total:

0.00

1914.47

 

Grand Total

88931

18000.00

* These States have ‘NIL’ GST compensation gap

Funds will be released starting from next round of borrowing.   

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