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States’ GST revenue shortfall can be bridged by monetising debt, NSSF: SBI report

States’ GST revenue shortfall can be bridged by monetising debt, NSSF: SBI report

Finance
MUMBAI: Economists at SBI on Friday proposed three options for states to raise resources to bridge the shortfall in GST revenue from the Centre. This can be done by the Reserve Bank monetising the state governments' debts, enlargement of Ways and Means Advances (WMA), or taking recourse to the National Small Savings Fund, they said. The Centre on Thursday had placed before the GST Council two options for borrowing by states to meet the shortfall in Goods and Services Tax (GST) revenues, pegged at Rs 2.35 lakh crore in the current fiscal. The Centre said a special window can be provided to the states, in consultation with the RBI, for borrowing at a reasonable interest rate. The SBI economists said even though the Centre has given the states the option to borrow as much as Rs 2.35 lakh cror...