GST: Karnataka can borrow ₹ 9,018 crore

THE Union government on Tuesday granted permission to Karinataka to borrow ₹9,018 crore to offset GST compensation losses. Karnataka was one of the first state to push for open market borrowing under Option 1 provided by the GST Council. On Tuesday’s GST Council meeting,  Home Minister Basavaraj Bommai highlighted the immediate need for compensation as the state is hard pressed for investment in both plan and non-plan expenditure.  The Government of India showed its commitment by reducing the estimated growth from 10 per cent to 7 per cent, which will provide an additional loan facility of ₹1,000 crore to the State Government from ₹11,432 crore to ₹12,400 crore. Karnataka had even suggested that the council can recommend to the Centre to permit states to borrow as per the provisions of Article 279 (4) (h) of the Constitution.

Courtesyg: Google (photo)

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