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Finance Ministry releases weekly instalment of Rs 6,000 crore to states to meet GST compensation shortfall

The Ministry of Finance has released the 10th weekly installment of six thousand  crore rupees to the states to meet the GST compensation shortfall.

Out of this, an amount of over five thousand 516 crore and 60 lakh rupees has been released to 23 States while an amount of 483 crore and 40 lakh to the three Union Territories of Delhi, Jammu and Kashmir and Puducherry. The  remaining five States- Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Now, more than 50 per cent of the estimated GST compensation shortfall has been released to the States and UTs with the Legislative Assembly. The Finance Ministry in a statement said that the government had set up a special borrowing window in October, 2020 to meet the estimated shortfall of 1.10 lakh crore rupees  in revenue arising on account of implementation of GST. The borrowings are being done through this window by the Central Government on behalf of the States and UTs.

The amount released this week was the 10th installment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.1526 per cent. So far, an amount of 60 thousand crore rupees has been borrowed by the Central Government. It said, this is in addition to additional borrowing permission of one lakh six thousand 830 crore rupees granted to the states.

 

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