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Government of India releases Rs 40,000 crore to States/ UTs with Legislature in-lieu of GST compensation shortfall Total amount of Rs 1,15,000 crore released in current year to meet GST compensation shortfall The Ministry of Finance today released an amount of Rs 40,000 crore to the States and
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FAQ :
The Government of India has released Rs 40,000 crore to states and UTs with legislatures in lieu of GST compensation shortfall. This brings the total amount released in the current financial year to Rs 1,15,000 crore.
This release is a back-to-back loan facility provided to states and UTs with legislatures to meet the shortfall in GST compensation due to lower cess collections.
An amount of Rs 75,000 crore was previously released on 15th July 2021.
The Rs 40,000 crore release is funded from the Government of India's borrowings through 5-year securities totalling Rs 23,500 crore and 2-year securities for Rs 16,500 crore.
No, it is expected that this release will not necessitate any additional market borrowing by the Central Government.
The Central Government decided to borrow Rs 1.59 lakh crore in 2021-22 and release it to states and UTs with legislatures on a back-to-back basis to meet the resource gap.
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