Centre should borrow money & pay states: Jharkhand fin min

Ranchi: A day after the Centre provided two options to raise fund for the GST shortfall, Jharkhand finance minister Rameshwar Oraon on Sunday demanded that the Union government should borrow money and distribute it among the states.
Talking to TOI over the phone, Oraon said he is currently waiting for a written communiqué from the Union finance ministry following deliberations of GST Council earlier this week to take a formal call.
On Saturday, the Centre circulated two options for the states — to borrow from RBI or from the market — to meet the GST shortfall, which will be repaid via an extension of the compensation cess beyond the June 2022 deadline. Sitaraman also gave the state ministers seven days to decide. Many non-BJP ruled states, however, rejected the Centre’s proposal.
Oraon said, “When the Union finance minister sounded two options, I had demanded her to give them in writing. I will check if the letter comes or not on Monday to decide our future course of action.”
He further said, “Why should a state borrow in the first place? The Centre owes us the money. It should borrow and distribute among the states. This is my firm opinion.”
Stating that Jharkhand owes nearly Rs 2,500 crore GST dues with the Centre, Oraon said, "The state government has inherited a frail economy after coming to power about seven months back and coupled with ongoing global pandemic which weaned away from our earnings, the state treasury is in a near-crash situation.”
He added, “In such a situation, our debt will further increase if we borrow. Moreover, when a poor state like Jharkhand goes for borrowing, it will get the money on a high interest rate. The Centre being the overall custodian of the nation’s economy, has the onus of ensuring its promised money to states like us.”