The Finance Ministry on Monday launched the ninth instalment of Rs 6,000 crore to the states to satisfy GST compensation shortfall, taking the whole quantity of fund launched to Rs 54,000 crore. The Centre had arrange a particular borrowing window in October 2020 to satisfy the estimated shortfall of Rs 1.10 lakh crore in income arising on account of implementation of GST.
The Ministry of Finance in a press release stated it has launched the ninth weekly instalment of Rs 6,000 crore to the states to satisfy the GST compensation shortfall.
Out of this, an quantity of Rs 5,516.60 crore has been launched to 23 states and an quantity of Rs 483.40 crore has been launched to the three Union Territories (UT) with Legislative Meeting (Delhi, Jammu & Kashmir & Puducherry) who’re members of the GST Council.
“The quantity has been borrowed this week at an rate of interest of 5.15 per cent. To this point, an quantity of Rs 54,000 crore has been borrowed by the Central Authorities by way of the particular borrowing window at a median rate of interest of four.74 per cent,” the assertion stated.
The remaining 5 states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim would not have a spot in income on account of GST implementation, an official assertion stated.
The borrowings beneath the particular window have been executed in 9 rounds and the quantity borrowed to this point was launched to the states on October 23, November 2, November 9, November 23, December 1, December 7, December 14, December 21 and December 28, 2020.
Along with offering funds by way of the particular borrowing window to satisfy the shortfall in income on account of GST implementation, the Centre has additionally granted further borrowing permission equal to zero.50 per cent of Gross States Home Product (GSDP) to the states to assist them in mobilising further monetary assets.
Permission for borrowing your complete further quantity of Rs 1,06,830 lakh crore (zero.50 per cent of GSDP) has been granted to 28 states beneath this provision, the assertion added.