A total amount of Rs. 48,000 crore released so far to all States and UTs with legislation
New Delhi: The Ministry of Finance today released the 8th weekly instalment of Rs. 6,000 crore to the States 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 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.
Also read: Finance Ministry releases Rs.6,000 crore loan to states to meet the GST compensation shortfall
The Government of India 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 borrwoings are being done through this window by the Government of India on behalf of the States and UTs. The borrowings have been done in 7 rounds. The amount borrowed so far was released to the States on 23rd October, 2020, 2nd November, 2020, 9th November, 2020, 23rd November, 2020, 1st December, 2020, 7th December, 2020, 14th December, 2020 and 21st December, 2020.
The amount released this week was the 8th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.1902%. So far, an amount of Rs. 48,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.6986%.
– global bihari bureau
