BHUBANESWAR: Odisha is expected to receive around Rs 3,600 crore as the Centre decided to borrow nearly Rs 1.1 lakh crore to meet the GST compensation shortfall. Announcing the special window of borrowing, the Centre on Thursday confirmed that the amount estimated assuming all states to join Option 1 will be borrowed in appropriate tranches and it will be passed on to the states as a back-to-back loan in lieu of GST compensation cess releases.
Odisha was one of the 21 states, which have so far opted for Option 1 of the two options the Centre had previously suggested for borrowing to meet the GST shortfall owing to Covid-19 pandemic.Hailing the Centre’s decision to borrow the amount instead of the states as was anticipated, a senior official of the State Finance department said Odisha is expected to get something between Rs 3,600 crore to Rs 3,800 crore.
“The decision has been taken to avoid differential rates of interest that individual states may be charged for their respective state development loans. I think it is best possible and an administratively easier arrangement to tide over the crisis,” he said.Additionally, under Option-I, the states are eligible to carry forward their unutilised borrowing space to the next financial year.
On Wednesday, Odisha had received the nod for additional borrowing of Rs 2,858 crore, which is 0.5 per cent of the Gross State Domestic Product (GSDP).