Traffic light stands in front of the South Block of the Central Secretariat buildings. (Photographer: T. Narayan/Bloomberg)
The central government’s proposal to states to finance a shortfall in compensation cess for the current financial year may bring to the markets a new kind of government security. This security, if states accept the proposal, would in some ways be a hybrid of central government and state government bonds.The centre has suggested two options to the states. The first, being discussed actively, includes a Rs 97,000 crore borrowing plan v...