States will get waiver if they opt to borrow Rs 97,000 crore

States will not have to pay either the principal or interest if they opt to borrow only Rs 97,000 crore to meet the shortfall in Goods and Services Tax (GST) compensation arising from GST implementation issues, but they will have to bear significant interest costs if they choose to borrow the entire shortfall of Rs 2.35 lakh crore, which includes revenue losses arising from the Covid-19 pandemic,…