Finance ministry releases weekly installment of ₹6,000 crore to states to meet GST shortfall
The finance ministry on Monday released the 13th instalment of ₹6,000 crore to the states to meet GST compensation shortfall, taking the total amount of fund released to ₹78,000 crore.
Till now, 70 per cent of the total estimated GST compensation shortfall has been released to the states and union territories (UTs) with legislative assembly.
The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of ₹1.10 lakh crore in revenue arising on account of the implementation of the GST.
The finance ministry in a statement said it has released the 13th weekly instalment of ₹6,000 crore to the states to meet the GST compensation shortfall. Out of this, an amount of ₹5,516.60 crore has been released to 23 states and an amount of ₹483.40 crore has been released to the 3 UTs with legislative assembly (Delhi, Jammu and Kashmir, and Puducherry).
The amount has been borrowed this week at an interest rate of 5.30 per cent.
"So far, an amount of ₹78,000 crore has been borrowed by the central government through the special borrowing window at an average interest rate of 4.74 per cent," it added.
Out of this, an amount of ₹71,099.56 crore has been released to the states and an amount of ₹6,900.44 crore has been released to the 3 UTs, the ministry said.
The remaining five states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation, it added.
In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Centre has also granted additional borrowing permission equivalent to 0.50 per cent of Gross States Domestic Product (GSDP) to the states to help them in mobilising additional financial resources.
Permission for borrowing the entire additional amount of ₹1,06,830 lakh crore (0.50 per cent of GSDP) has been granted to 28 states under this provision, the statement added.
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