Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

17th Instalment of Rs. 5,000 crore released to the States on Friday, 19th February, 2021.

91 percent of the estimated shortfall released.

The Ministry of Finance, Department of Expenditure has on Friday, released the 17th weekly instalment of Rs.5,000 crore to the States to meet the GST compensation shortfall. Out of this, an amount of Rs. 4,730.41 crore has been released to 23 States and an amount of Rs. 269.59 crore has been released to the 3 Union Territories (UT) 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.

Till now, 91 percent of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly. Out of this, an amount of Rs. 91,460.34 crore has been released to the States and an amount of Rs. 8,539.66 crore has been released to the 3 UTs with Legislative Assembly.

GST compensation shortfall released to States reaches Rs. 1 lakh crore

The Government of India 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. The borrowings are being done through this window by the Government of India on behalf of the States and UTs. 17 rounds of borrowings have been completed so far starting from 23rd October, 2020.

Under the special window, the Government of India has been borrowing in Government Stock with tenor of 3 years and 5 years. The borrowing made under each tenor is equally divided among all the States as per their GST compensation shortfall. With the current release, the proportionate pending GST shortfall with respect to borrowing under 5 years tenure has been concluded for 16 States and 2 UTs. These States/ UTs were onboard for GST compensation release from the 1st Installment.

The amount released this week was the 17th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 5.5924%. So far, an amount of Rs. 1,00,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.8307%.

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 0.50 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. All the States have given their preference for Option-I. Permission for borrowing the entire additional amount of Rs. 1,06,830 crore (0.50 % of GSDP) has been granted to 28 States under this provision.

The amount of additional borrowing permission granted to 28 States and the amount of funds raised through special window and released to the States and Union Territories so far is annexed.

State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTs till 19.02.2021

(Rs. in crore)

S. No.

Name of State / UT

Additional borrowing of 0.50 percent allowed to States

Amount of fund raised through special window passed on to the States/ UTs

1

Andhra Pradesh

5051

2222.71

2

Arunachal Pradesh*

143

0.00

3

Assam

1869

956.04

4

Bihar

3231

3755.77

5

Chhattisgarh

1792

2143.75

6

Goa

446

807.89

7

Gujarat

8704

8869.60

8

Haryana

4293

4185.66

9

Himachal Pradesh

877

1651.39

10

Jharkhand

1765

1164.60

11

Karnataka

9018

11932.82

12

Kerala

4,522

4304.12

13

Madhya Pradesh

4746

4368.43

14

Maharashtra

15394

11519.31

15

Manipur*

151

0.00

16

Meghalaya

194

107.73

17

Mizoram*

132

0.00

18

Nagaland*

157

0.00

19

Odisha

2858

3675.95

20

Punjab

3033

6239.58

21

Rajasthan

5462

4081.71

22

Sikkim*

156

0.00

23

Tamil Nadu

9627

6002.53

24

Telangana

5017

1940.95

25

Tripura

297

217.34

26

Uttar Pradesh

9703

5777.46

27

Uttarakhand

1405

2227.49

28

West Bengal

6787

3307.51

Total (A):

106830

91460.34

1

Delhi

Not applicable

5640.89

2

Jammu & Kashmir

Not applicable

2185.16

3

Puducherry

Not applicable

713.61

Total (B):

Not applicable

8539.66

Grand Total (A+B)

106830

100000.00

* These States have ‘NIL’ GST compensation gap

Tags :


Comments


img

Trending Tags