Ministry of Finance has launched at the moment Rs 75,000 crore to the States and UTs with Legislature below the back-to-back mortgage facility in lieu of GST Compensation.
The GST Council in its assembly on May 28 had determined that the central authorities would borrow Rs 1.59 lakh crore and launch it to the states and UTs with the legislature on a backtoback foundation to meet the useful resource hole due to the brief launch of compensation on account of insufficient quantity within the compensation fund.
- PTI New Delhi
- Last Updated:July 15, 2021, 19:07 IST
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The authorities on Thursday mentioned it has launched Rs 75,000 crore to the states and Union Territories to compensate them for the shortfall in GST income. The GST Council in its assembly on May 28 had determined that the central authorities would borrow Rs 1.59 lakh crore and launch it to the states and UTs with the legislature on a back-to-back foundation to meet the useful resource hole due to the brief launch of compensation on account of insufficient quantity within the compensation fund. “Ministry of Finance has released today Rs 75,000 crore to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation.
This release is in addition to normal GST compensation being released every 2 months out of actual cess collection,” the ministry mentioned in a press release. It additional mentioned that every one eligible states and UTs (with the legislature) have agreed to the preparations for the funding of the compensation shortfall below the back-to-back mortgage facility. “For effective response and management of COVID-19 pandemic and a step-up in capital expenditure, all States and UTs have a very important role to play. For assisting the States/UTs in their endeavour, Ministry of Finance has front-loaded the release of assistance under the back-to-back loan facility during FY 2021-22 Rs 75,000 crore (almost 50 per cent of the total shortfall for the entire year) released today in a single instalment,” the ministry added. The steadiness quantity can be launched within the second half of 2021-22 in regular instalments.
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