Thakur’s statement came a day after the Centre agreed to borrow Rs 1.1 lakh crore under the option 1offered to states and on-lend to them in lieu of compensation cess shortfall. The Centre had on August 28 offered two options to states to address the deficit in the compensation cess fund because of the Covid-19 induced slowdown. Under the first option, states were to borrow a total of Rs 97,000 crore, which was subsequently raised to Rs 1.1 lakh crore, to meet that portion of deficit attributed to rollout of the goods and services tax (GST). States had been insisting that the Centre carry out the borrowing and compensate them.
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