Centre releases ₹2,104 crore to states to meet GST compensation1 min read . Updated: 09 Mar 2021, 06:16 PM IST
- The government had set up a special borrowing window in October 2020 to meet the estimated shortfall of ₹1.10 lakh crore in revenue
The finance ministry on Tuesday has released the 19th weekly instalment of ₹2,104 crore to the states to meet the Goods and Services Tax (GST) compensation shortfall.
"Till now, 96 per cent of the total estimated GST compensation shortfall has been released to the states and Union Territories (UTs) with Legislative Assembly. Out of this, an amount of ₹97,242.03 crore has been released to the states and an amount of ₹8,861.97 crore has been released to the three UTs with the Legislative Assembly," the ministry said in a statement.
The amount has been borrowed this week at an interest rate of 5.8594 per cent. So far, an amount of ₹1,06,104 crore has been borrowed by the central government through the special borrowing window at a weighted average interest rate of 4.8842%.
The government 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 implementation of GST. The borrowings are being done through this window by the Government of India on behalf of the states and UTs. 19 rounds of borrowings have been completed so far starting from October 23, 2020.
Additionally, the Centre has also granted additional borrowing permission equivalent to 0.50 per cent of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources.
All the states have given their preference for Option-I. Permission for borrowing the entire additional amount of ₹1,06,830 crore (0.50 per cent of GSDP) has been granted to 28 states under this provision.
(With inputs from agencies)
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