Centre releases Rs6,000 cr to states in GST reduction

New Delhi, December 9

The Centre on Wednesday said it has released the sixth installment of Rs 6,000 crore to the states to meet the GST compensation shortfall. With this instalment, a total amount of Rs 36,000 crore has been released so far.

Out of Rs 6,000 crore released this week, an amount of Rs 5,516.60 crore has been given to 23 states and Rs 483.40 crore has been released to the 3 Union Territories (UTs) with Legislative Assembly (Delhi, Jammu & Kashmir and Puducherry) which are members of the GST Council, the Finance Ministry said in a statement.

“The amount has been borrowed this week at an interest rate of 4.2089%. So far, an amount of Rs 36,000 crore has been borrowed by the central government through the special borrowing window at an average interest rate of 4.7106%,” it said.

The remaining five states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim, do not have a gap in revenue on account of GST implementation.

The Government of India is borrowing this amount on behalf of the states and UTs through a special borrowing window to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of GST implementation, it said.

The Centre has also granted additional borrowing permission equivalent to 0.5 per cent of states’ GSDP to the states choosing option-1 to meet GST compensation shortfall to help them in mobilising additional financial resources. — PTI

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