Tamil Nadu has got permission from the Centre to raise an additional amount of ₹9,627 crore through open market borrowings. The Department of Expenditure, Ministry of Finance, on Wednesday granted the permission after the State formally communicated its acceptance for Option-1 to meet the shortfall arising out of GST implementation.
In total, 21 States and two Union Territories, Delhi, and Jammu and Kashmir, have so far requested Option-1, according to a press release.
Last week, Tamil Nadu indicated its preference for taking Option-1 proposed by the GST Council on the issue of GST compensation shortfall, joining the majority of States that opted for the same.
“Option-2 has worked out to be completely unattractive and unacceptable to almost all States. In such circumstances and given the very limited options available, Tamil Nadu chooses Option-1 in the hope it will be reworked to reflect a higher proportion of the actual loss in revenue of States,” a statement quoted Tamil Nadu Minister for Fisheries and Personnel and Administrative Reforms D Jayakumar, who delivered his views during the 42nd Goods and Services Tax Council meeting held through video-conferencing on Monday.
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