FinMin releases weekly instalment of Rs 6,000 cr to states meet GST shortfall


Team Udayavani, Jan 25, 2021, 3:11 PM IST

New Delhi:  The finance ministry on Monday released the 13th instalment of Rs 6,000 crore to the states to meet GST compensation shortfall, taking the total amount of fund released to Rs 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 Rs 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 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 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 Rs 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 Rs 71,099.56 crore has been released to the states and an amount of Rs 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 Rs 1,06,830 lakh crore (0.50 per cent of GSDP) has been granted to 28 states under this provision, the statement added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

After Yogi’s ‘batenge, katenge’ slogan, PM pitches for unity with ‘Ek hai, toh safe hai’ message

“Coming soon.. 2025”: KL Rahul and Athiya Shetty announce first pregnancy

Mangaluru: Unauthorized bus stops at signals fuel traffic woes and safety concerns

SC notice to Karnataka, DK Shivakumar on CBI plea against withdrawal of consent by state govt

Will remain active in politics till my last breath: JD(S) patriarch & ex-PM Deve Gowda

BJP calls Congress govt ‘laughing stock’ as ‘samosa politics’ heats up in Himachal

Related Articles More

UP women’s body proposes men shouldn’t tailor women’s clothes or cut their hair

After Yogi’s ‘batenge, katenge’ slogan, PM pitches for unity with ‘Ek hai, toh safe hai’ message

Bank fraud: ED seizes jewellery, cash worth over Rs 1 cr in raids against Bhopal-based company, directors

No greater feeling than serving those in need: Outgoing CJI D Y Chandrachud

CJI Chandrachud: A legacy of landmark verdicts that shaped society and some controversy too

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

Use Carnatic music to promote Kannada language: Nirmala Sitharaman

Udupi: Car collides with bike; Rider injured

UP women’s body proposes men shouldn’t tailor women’s clothes or cut their hair

NSE, BSE to be closed on Nov 20 for Maharashtra assembly polls

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.