Until present, the states and UTs with Legislative Assembly have received 70% of the entire expected Goods and Services Tax (GST) compensation gap.
Digital Desk: On Friday, the Union Finance Ministry announced the transfer of the 13th weekly instalment of 6,000 crore to 23 states and three Union Territories (UTs) to cover the GST compensation gap.
A total of 5,516.60 crore has been distributed to the 23 states, while 483.40 crore has been released to the three Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir, and Puducherry) that are members of the GST Council.
The remaining five states, Arunachal Pradesh, Manipur, Mizoram, Nagaland, and Sikkim, do not have a revenue deficit as a result of GST implementation, according to a statement from the Finance Ministry.
Until present, the states and UTs with Legislative Assembly have received 70% of the entire expected Goods and Services Tax (GST) compensation gap. According to the ministry, an amount of 71,099.56 crore has been issued to the states, while an amount of 6,900.44 crore has been released to the three UTs having Legislative Assembly.
In October 2020, the government established a special borrowing window to offset a projected revenue deficit of 1.10 lakh crore due to the introduction of GST. The borrowings are made by the Government of India on behalf of the states and union territories through this channel. So far, 13 rounds of borrowing have been performed, beginning on October 23rd, 2020.
Until present, the states and UTs with Legislative Assembly have received 70% of the entire expected Goods and Services Tax (GST) compensation gap. According to the ministry, an amount of 71,099.56 crore has been issued to the states, while an amount of 6,900.44 crore has been released to the three UTs having Legislative Assembly.
In October 2020, the government established a special borrowing window to offset a projected revenue deficit of 1.10 lakh crore due to the introduction of GST. The borrowings are made by the Government of India on behalf of the states and union territories through this channel. So far, 13 rounds of borrowing have been performed, beginning on October 23rd, 2020.
Until present, the states and UTs with Legislative Assembly have received 70% of the entire expected Goods and Services Tax (GST) compensation gap. According to the ministry, an amount of 71,099.56 crore has been issued to the states, while an amount of 6,900.44 crore has been released to the three UTs having Legislative Assembly.
In October 2020, the government established a special borrowing window to offset a projected revenue deficit of 1.10 lakh crore due to the introduction of GST. The borrowings are made by the Government of India on behalf of the states and union territories through this channel. So far, 13 rounds of borrowing have been performed, beginning on October 23rd, 2020.
"The amount released this week was the 13th instalment of such funds provided to the states. The amount has been borrowed this week at an interest rate of 5.3083 per cent. So far, an amount of ₹ 78,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7491 per cent," the Finance Ministry said.
In addition to providing funds through the special borrowing window to meet the revenue shortfall caused by GST compensation, the Government of India has granted additional borrowing permission equivalent to 0.50 percent of Gross State Domestic Product (GSDP) to states opting for Option-I to meet the GST compensation shortfall in order to assist them in mobilising additional financial resources.
Option-I has been chosen by all states, and permission to borrow the entire additional amount of 1,06,830 crore (0.50 percent of GSDP) has been granted to 28 states under this provision.
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