Finance Ministry Approved Tamil Nadu To Raise Additional Loan of Rs 9627 Cr Through Open Market
The Department of Expenditure, Ministry of Finance granted permission to Tamil Nadu become to borrow an additional amount of Rs.9,627 crore through open market.
The permission was issued after the State formally communicated its acceptance for Option-1 to meet the shortfall arising out of GST implementation. 21 States and 2 Union Territories, Delhi and Jammu & Kashmir, have so far requested Option-1.
Additional borrowing permission has been granted @ 0.50 % of the Gross State Domestic Product (GSDP) to those States who have opted for Option- 1 out of the two options suggested by the Ministry of Finance to meet the shortfall arising out of GST implementation.
In the meeting of the GST Council held on 27th August 2020, these two options were put forward and were subsequently communicated to the States on 29th August 2020. Twenty States have given their preferences for Option-1.
These States who were granted permission are; Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura, Uttar Pradesh and Uttarakhand.
