Our choice is that the central government borrows the money and also makes the cess fund available to the GST Council. In case they are afraid of the fiscal deficit or the interest rate going up, they should monetise this debt. Whether the Centre borrows or the states borrow, macro economical impact would be more on the states, even of fiscal deficit. The Centre should look more at the combined impact of Centre and states' fiscal deficit. When the states borrow there are three problems: the interest rates are higher, the FRBM debt ceiling has to be amended, and the Centre may not give enough room for neutralising the entire compensation. The third problem has a practical aspect as the compensations to the different states varies considerably, not to say some states with surplus revenue but even they would have gone into the red. On the other hand, there are states which are due as much as 40 per cent compensation like Puducherry, for example.