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<h1>Government Launches Special Window for States to Borrow Rs. 1.1 Lakh Crore for GST Compensation Cess Shortfall.</h1> The government has introduced a Special Window for States to address the GST Compensation Cess shortfall, allowing them to borrow Rs. 1.1 lakh crore. This borrowing, facilitated by the Government of India, will be distributed to States as back-to-back loans, not affecting the central fiscal deficit. States can also carry forward unused borrowing capacity to the next fiscal year. This measure prevents varying interest rates for State Development Loans and simplifies administration. Additionally, States benefiting from this Special Window are expected to reduce borrowing from the Aatma Nirbhar Package's additional 2% GSDP borrowing facility.
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