₹1-lakh crore GST compensation released since Oct. 2020: Ministry
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The Ministry on February 19 released the seventeenth weekly instalment of ₹5,000 crore to 23 States and three Union Territories.
The Centre has released ₹1-lakh crore to States and Union Territories in 4 months since October 2020, to satisfy GST compensation shortfall, the Finance Ministry mentioned on February 20.
The Ministry on February 19 released the seventeenth weekly instalment of ₹5,000 crore to 23 States and three U.T.s, taking the whole quantity released to this point underneath the particular borrowing window arrange in October final 12 months to ₹1 lakh crore.
The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim, don’t have a niche in income on account of GST implementation.
The Centre had arrange a particular borrowing window in October 2020 to satisfy the estimated shortfall of ₹1.10 lakh crore in income arising on account of implementation of GST. The borrowings are being finished by way of this window by the Centre on behalf of States and U.T.s.
Under the particular window, the Centre has been borrowing in authorities inventory with tenor of three years and 5 years. The borrowing made underneath every tenor is equally divided amongst all States as per their GST compensation shortfall.
With the present launch, the proportionate pending GST shortfall with respect to borrowing underneath 5 years tenor has been concluded for 16 States and a pair of U.T.s.
“Till now, 91% of the total estimated GST compensation shortfall has been released to States & UTs with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry),” the assertion mentioned.
“An amount of ₹1,00,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.83%….Out of this, an amount of ₹91,460.34 crore has been released to States and an amount of ₹8,539.66 crore has been released to the 3 U.T.s with Legislative Assembly,” it mentioned.
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