To make up for the states' loss of GST revenue over the COVID-19 years, the center may return market loans in advance.
After the Goods and Services Tax (GST) was implemented, the states had a revenue shortfall. To address this, the compensatory cess was initially implemented for a five-year period.
According to an official, the federal government may be able to return the loans totaling Rs 2.69 lakh crore that it had taken out to make up for the states' loss of GST revenue in FY21 and FY22 by November 2025, four months earlier than expected.
It is anticipated that the market borrowings would be fully repaid by March 2026, as was previously estimated.
The official stated that the matter is anticipated to be discussed in the GST Council's August meeting.
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