New Delhi. The Congress-ruled Punjab has accepted the Centre's proposal to take a loan to meet the shortfall in the Goods and Services Tax (GST), under which it will get Rs 8,359 crore through special means. The Finance Ministry said in a statement, "The Punjab government has informed to accept option-1 to meet the revenue shortfall caused by the implementation of GST. The number of states choosing this option has increased to 26. The three union territories (Delhi, Jammu and Kashmir, Puducherry) have also opted for option-1.
The Center has already borrowed Rs 24,000 crore in four installments from the states and has been given to 23 states and three union territories on October 23, November 2, November 9 and November 23. Punjab, Kerala and West Bengal will receive funds from the next cycle of borrowing. Earlier this week, Kerala and West Bengal also reported to the Center to accept this borrowing option to meet the GST shortage.
The states opting for option one will be given special facility to avail loans to compensate the loss due to implementation of GST. Also, on accepting this option, the States will be allowed to borrow the last installment of 0.50 percent of the State Gross State Domestic Product (GSDP) under the Self-Reliant India Mission unconditionally. States can borrow a total of two percent of GSDP under this mission.