West Bengal opts for Rs 1.1 lakh crore borrowing option to meet GST compensation shortfall

West Bengal has taken up the Rs 1.1 lakh crore borrowing option offered by the Centre to meet the shortfall in goods and services tax (GST) compensation, but has asked Centre to borrow the remaining shortfall of Rs 72,000 crore till January 2021, as well.

West Bengal finance minister Amit Mitra has written to Union finance minister Nirmala Sitharaman saying that the state will take the option due to acute fiscal stress on the state’s finances. He also sought that the GST Council meeting be convened at the earliest to discuss the alternative borrowing mechanism.

“Considering the acute financial stress on the state’s finances due to the Covid 19 pandemic and the Amphan cyclone, West Bengal is willing to go along with your new proposal,” Mitra said in his letter written on Friday.