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The Finance Ministry on Wednesday released sixth weekly instalment of ₹6,000 crore to the States to meet the GST compensation shortfall.
Out of this, ₹5,516.60 crore has been released to 23 States and ₹483.40 crore has been released to the three Union Territories with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States — Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim — do not have a gap in revenue on account of GST implementation.
The Centre is borrowing this amount on behalf of the States and UTs through a special borrowing window to meet the estimated shortfall of ₹1.10-lakh crore in revenue arising on account of GST implementation. The amount in 6th instalments has been borrowed at an interest rate of 4.2 per cent. So far, ₹36,000 crore has been borrowed by the Centre through the special borrowing window at an average interest rate of 4.7 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 of India has also granted additional borrowing permission equivalent to 0.5% of States’ GSDP to the states choosing option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. So far, permission for borrowing an additional amount of ₹1,06,830 crore has been granted to 28 States under this provision.
Table
Money to States/UTs
(Rs. in Crore)
* These States have ‘NIL’ GST compensation gap
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