The states who dissent on the borrowing options, still want Centre to borrow entire shortfall in GST Compensation cess. Out of the states’ total revenue receipts of Rs 33.27 lakh crore budgeted for FY21, the central transfers (including grants-in aid) account for a staggering 47 per cent at Rs 15.6 lakh crore.RBI said in its report titled State Finances: A Study of Budgets of 2020-21, that states’ own tax revenue accounts for 45-50 per cent of the total revenue receipts but COVID has hit a ‘body blow’ to their finances.
