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Govt Releases Rs 6,000 Crore To States, UTs To Meet GST Compesation Shortfall
Ministry of Finance. (GettyImages)
The Ministry of Finance has released the 14th weekly instalment of Rs 6,000 crore to the states on Wednesday (3 February) to meet the GST compensation shortfall.
Out of this, an amount of Rs 5,516.60 crore has been released to 23 States and an amount of Rs 483.40 crore has been released to the three Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council, the Ministry of Finance said in a statement.
The remaining five states - Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim - do not have a gap in revenue on account of GST implementation, it said.
"Till now, 76 per cent of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly. Out of this, an amount of Rs 76,616.16 crore has been released to the States and an amount of Rs 7,383.84 crore has been released to the three UTs with Legislative Assembly," the ministry said.
The Central government had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of GST. The borrowings are being done through this window by the Centre on behalf of the states and UTs.
The amount released this week was the 14th instalment of such funds provided to the states. The amount has been borrowed this week at an interest rate of 4.6144 per cent.
So far, an amount of Rs 84,000 crore has been borrowed by the Central government through the special borrowing window at an average interest rate of 4.7395 per cent.
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