New Delhi: The Ministry of Finance, Department of Expenditure has released the nineteenth weekly instalment of Rs. 2,104 crore to the States to meet the GST compensation shortfall. Out of this, an quantity of Rs. 2,103.95 crore has been released to 7 States and an quantity of Rs. 0.05 crore has been released to the Union Territory of Puducherry.
Till now, 96 p.c of the entire estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly. Out of this, an quantity of Rs. 97,242.03 crore has been released to the States and an quantity of Rs. 8,861.97 crore has been released to the three UTs with Legislative Assembly.
The Government of India had arrange a particular borrowing window in October, 2020 to meet the estimated shortfall of Rs. 1.10 lakh crore in income arising on account of implementation of GST. The borrowings are being carried out by way of this window by the Government of India on behalf of the States and UTs. 19 rounds of borrowings have been accomplished to date ranging from twenty third October, 2020.
Under the particular window, the Government of India has been borrowing in Government Stock with tenure of three years and 5 years. The borrowing made below every tenure is equally divided amongst all of the States as per their GST compensation shortfall. With the present launch, the proportionate pending GST shortfall with respect to borrowing below 5 years tenor has been concluded for 23 States and three UTs with legislature. Remaining 5 States haven’t GST compensation shortfall.
The quantity released this week was the nineteenth instalment of such funds supplied to the States. The quantity has been borrowed this week at an rate of interest of 5.8594%. So far, an quantity of Rs. 1,06,104 crore has been borrowed by the Central Government by way of the particular borrowing window at an weighted common rate of interest of 4.8842%.Â
In addition to offering funds by way of the particular borrowing window to meet the shortfall in income on account of GST implementation, the Government of India has additionally granted extra borrowing permission equal to 0.50 % of Gross States Domestic Product (GSDP) to the states selecting Option-I to meet GST compensation shortfall to assist them in mobilising extra monetary assets. All the States have given their desire for Option-I. Permission for borrowing the whole extra quantity of Rs.1,06,830 crore (0.50 % of GSDP) has been granted to 28 States below this provision.
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The quantity of extra borrowing permission granted to 28 States and the quantity of funds raised by way of particular window and released to the States and Union Territories to date is annexed.
