FINMIN RELEASES WEEKLY ₹6,000 CR SUM TO STATES TO MEET GST DEFICIT

NEW DELHI: The finance ministry on Monday released the eighth weekly instalment of ₹6,000 crore to the states to meet the GST compensation shortfall, taking the total amount released so far under this window to ₹48,000 crore.

“The ministry of finance has released the 8th weekly instalment of ₹6,000 crore to the states to meet GST compensation shortfall. Out of this, an amount of ₹5,516.60 crore has been released to 23 states and an amount of ₹483.40 crore has been released to the three union territories with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry),” it 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. The Centre 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 Centre on behalf of the States and UTs. The amount borrowed so far was released to the states on October 23, November 2, November 9, November 23, December 1, December 7, December 14 and December 21.

“The amount has been borrowed this week at an interest rate of 4.19%. So far, an amount of ₹48,000 crore has been borrowed by the government through the special borrowing window at an average interest rate of 4.69%,” the statement added.