Image Source : PTI Finance Ministry releases weekly instalment of Rs 6,000 crore to fulfill GST shortfall
The Finance Ministry on Monday launched the ninth instalment of Rs 6,000 crore to the states to fulfill 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 fulfill 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 fulfill 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 Assembly (Delhi, Jammu & Kashmir & Puducherry) who’re members of the GST Council.
“The amount has been borrowed this week at an interest rate of 5.15 per cent. So far, an amount of Rs 54,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.74 per cent,” the assertion stated.
The remaining 5 states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim wouldn’t have a niche in income on account of GST implementation, an official assertion stated.
The borrowings below the particular window have been accomplished 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.
In addition to offering funds via the particular borrowing window to fulfill the shortfall in income on account of GST implementation, the Centre has additionally granted extra borrowing permission equal to 0.50 per cent of Gross States Domestic Product (GSDP) to the states to assist them in mobilising extra monetary assets.
Permission for borrowing your complete extra quantity of Rs 1,06,830 lakh crore (0.50 per cent of GSDP) has been granted to twenty-eight states below this provision, the assertion added.
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