Centre to borrow Rs 1.1 lakh crore to make up for states’ GST shortfall: Finance Ministry

Clarifying the rationale behind the Centre’s borrowing, another officer said, “When states borrow directly from RBI, interest rates will depend on their ratings. When the Centre borrows and passes on to states, the rate of interest will be same for all states.”Divakar Vijayasarathy, founder and managing partner at DVS Advisors LLP, said, “The Centre is borrowing for operational convenience and it should not be construed as yielding to states’ requests.” Twenty-one states have so far chosen the Centre’s special window to borrow to meet the shortfall in GST revenue.