Centre releases 6th installment to States to meet GST compensation shortfall
New Delhi: Union Finance Ministry has released the 16th weekly installment of Rs.5000 cr to the States on Monday to meet the GST compensation shortfall.
Of this Rs.4,597.16 cr was released to 23 States. An amount of Rs.402.84 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry). They are members of the GST Council.
Till now, 86 percent of the total estimated GST compensation shortfall has been released to the States and UTs with Legislative Assembly. Of this, an amount of Rs.86,729.93 cr has been released to the States and an amount of Rs.8,270.07 cr released to the 3 UTs with Legislative Assembly.
The Government of India had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs.1.10 Lakh cr in revenue arising on account of implementation of GST. The borrowings are being done through this window by the Government of India on behalf of the States and UTs. 16 rounds of borrowings have been completed so far starting from October 23, 2020.
The amount released this week was the 16th installment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.6480%. So far, an amount of Rs.95,000 cr has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7831%.