New Delhi [India], Jan 11 (ANI): The Centre has released 11th weekly instalment of Rs 6,000 crore to the states to meet the Goods and Services Tax (GST) compensation shortfall, the Ministry of Finance said on Monday.
Of this, Rs 5,516.6 crore has been released to 23 states and Rs 483.4 crore to the three union territories with legislative assembly (Delhi, Jammu & Kashmir and Puducherry) which are members of the GST Council.
The remaining five states -- Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim -- do not have a gap in revenue on account of GST implementation. Now, 60 per cent of the estimated GST compensation shortfall has been released to the states and union territories.
The government 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 implementation of GST.
Of this, Rs 60,066.36 crore has been released to states and Rs 5,933.64 crore to the three union territories. The borrowings have been done in 11 rounds, the Finance Ministry said in a statement.
The amount has been borrowed at an interest rate of 5.1057 per cent. So far, Rs 66,000 crore has been borrowed by the Central government through the special borrowing window at an average interest rate of 4.7271 per cent.
In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the government has also granted additional borrowing permission equivalent to 0.5 per cent of gross state domestic product (GSDP) to the states choosing option one.
All the states have been given their preference for option one. Permission for borrowing the entire additional amount of Rs 106,830 crore (0.50 per cent of GSDP) has been granted to 28 states under this provision.