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Dimapur, Jan. 18 (EMN): The Ministry of Finance has released the 12th installment of INR 6,000 crore to the states as back-to-back loan to meet the GST compensation shortfall.
This is in addition to additional borrowing permission of INR 1,06,830 crore granted to the states
According to a PIB report, INR 5,516.60 crore has been released to 23 states and an amount of INR 483.40 crore has been released to the three union territories (ut) with legislative assembly - Delhi, Jammu and Kashmir and Puducherry.
The remaining five states including Nagaland, Arunachal Pradesh, Manipur, Mizoram and Sikkim do not have a gap in revenue on account of GST implementation.
The report stated that a total of INR 72,000 crore has been released so far to all states and UTs with legislation and with that, 65 % of the estimated GST compensation shortfall has been released. INR 65,582.96 crore has been released to the states and INR 6,417.04 crore has been released to the three UTs, the report stated.
In October, the government of India had set up a special borrowing window to meet the estimated shortfall of INR 1.10 lakh crore in revenue arising on account of implementation of GST. Starting from October 23, 2020, 12 rounds of borrowings have been completed so far.
The amount has been borrowed this week at an interest rate of 4.4315% and so far, a total amount of INR 72,000 crore has been borrowed by the central government through the special borrowing window at an average interest rate of 4.7024%, according to PIB report.
It is stated that the Government of India has also granted additional borrowing permission equivalent to 0.50% of Gross States Domestic Product (GSDP) to the states to meet GST compensation shortfall to help them in mobilising additional financial resources. Permission for borrowing the entire additional amount of INR 1,06,830 crore (0.50% of GSDP) has been granted to 28 States under this provision, it stated.