How government can address the issues in compensating states for GST revenue shortfall

To compensate states for the shortfall in State GST collection (including IGST settlement) vis-à-vis projected SGST collection in 2020-21, the Union government has borrowed (as back-to-back loan) Rs. 1,10,208 crore during 2020-21 from the market. The borrowed amount is passed on to states as special borrowing scheme and it will be serviced by the Union government from the revenue that will be gene…