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

18-11-2020

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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 23^rd October, 2020, 2^nd November, 2020 and 9^th 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 23^rdNovember, 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 17^th 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