New Delhi, Oct. 16 -- A day after the central government said that it would borrow Rs.1.1 lakh crore on behalf of states to meet the GST shortfall under a special window, Congress leader P Chidambaram said Friday that the Centre has taken the "correct first step". "I welcomed the change of heart," he tweeted.

The veteran congress leader also asked the Centre to take necessary steps to re-establish trust with the states. "Having taken the correct first step, I urge the PM and the FM to take the second step also and re-establish the trust between the Centre and the States," the former finance minister said on Twitter.

The finance ministry on Thursday said that the amount borrowed will be passed on to the states as "back-to-back loan in li...