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Home / Business / Jharkhand only state yet to accept Centre’s GST compensation formula

Jharkhand only state yet to accept Centre’s GST compensation formula

The Centre since October 23 has borrowed Rs 30,000 crore on behalf of the states in five instalments till December.
The states, are also entitled to get unconditional permission to borrow the final instalment of 0.50 per cent of gross state domestic product out of 2 per cent additional borrowings permitted by the Centre.

Achintya Ganguly   |   Ranchi   |   Published 04.12.20, 04:18 AM

Jharkhand remains the only state yet to accept the Centre’s compensation formula to meet the GST cess shortfall. The formula mandates the Centre to borrow on behalf of the states. With Chhattisgarh communicating its acceptance of the formula on Wednesday, all the remaining 27 states and the three Union Territories with legislative assemblies — Delhi, Jammu and Kashmir and Puducherry — have opted for the plan. 

“I can let you know only after I discuss the matter with the departmental officers and also consult the finance ministers of Bengal and Chhattisgarh,” Jharkhand finance minister Raneshwar Oraon told The Telegraph when asked what would be the state’s stand at this juncture. 

“There were certain issues relating to the principle amount of the loan and its interest that needed to be sorted out,” he further said,  adding that could not be done as he had to be hospitalised after he tested positive for Covid-19 last month. 

The minister was released from hospital after he tested negative and he is recuperating at his residence.

The Centre since October 23 has borrowed Rs 30,000 crore on behalf of the states in five instalments till December. The states, are also entitled to get unconditional permission to borrow the final instalment of 0.50 per cent of gross state domestic product out of 2 per cent additional borrowings permitted by the Centre.

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