Government plans to borrow 1.1 trillion rupees to give to states
Will borrow money in tranches to compensate tax losses during the COVID-19 pandemic
Due to the sharp fall in tax collection during the period, govt was unable to pay for states’ revenue loss
Centre had earlier asked states to borrow either from the RBI’s special window or raise funds from the market
The new amount excludes the Rs 4.34 trillion the centre planned to raise from the market
FM Nirmala Sitaraman had offered monetary assistance during the 42nd GST Council meet
The borrowing won’t impact the federal fiscal deficit, says a govt statement
